Are you struggling to find the best possible solution to create DAO?
Blockchain technology has become an indispensable trend in modern culture. DAO or Decentralized Autonomous Organization is a social organization that is open-source blockchain technology. Through DAO, every user can access a built-in feature for managing its code.
Now you may wonder what drives this organization and who makes the decisions? DAO is like any other traditional organization but completely autonomous. Autonomous means that the central leadership in DAO doesn’t lie with a CEO.
The crucial decision comes from the members, and the community administers it following strict guidelines enforced on blockchain. Have you ever wondered what DAO means?
DAO is an internet-driven organization jointly owned and managed by its members. It follows a democratized management rather than a hierarchical one. The DAO treasury is in-built and accessible only with the members’ approval. The collective decisions are made through group votes within a stipulated time.
Trust is the foundation of any organization. When you set up an organization with someone over the internet, you require a lot of trust with your co-workers. With the advent of DAO codes, global collaboration and coordination have seen a new facet. Decentralized autonomous organizations are the new norm where you need not rely on anyone.
But have you ever given DAO implementation a try? Is it easy to create a DAO over the internet? This article can offer you steps to develop, implement, and the future that DAO holds for the modern generation.
What is the function of DAO?
Decentralized Autonomous Organizations use smart contracts for their operation. The community-led organization has these contracts that showcase the initial set of rules and guidelines for DAO operation. These fixed rules are changed only when the DAO’s core community members vote for a change.
These small contracts are suited for creating an autonomous and sustainable DAO. They come in handy as every time a new decision to the workflow, structure of DAO, government system, and incentives are underway, they need votes from the community to take effect.
When the rules are finalized with the smart contract, the quick procedure is to get funding. DAO uses smart contracts, but smart contracts require the design, development, and distribution of native tokens.
As per the guidelines, native tokens can vote in the community and incentivize activities. All the users with a keen interest in participating in the growth of DAO usually purchase the native token, which is cryptocurrencies.
The voting rights bestowed upon the DAO crypto token holders are directly proportional to the holding. To shape the future of DAO, they are also given the privileges of owning equity in DAO.
The token holders are the major stakeholders in the community who work towards the entire network enhancement. When the DAO has received enough funds to start, the token holders will ultimately be entitled to take decisions through voting. Along with voting rights, every token holder is also eligible to work for the DAOs, enabling them to take governance tokens in return.
Real-World Benefits of DAO:
With the advent of cryptocurrencies, NFTs, and new technology, DAO crypto tokens are used to fulfill different purposes like buying and creating NFTs, charity, investment, fundraising, etc.
Let us consider Decentraland DAO, a 3D virtual space with a planning committee in the metaverse. The committee decides how to moderate content, the policies and auctions of LAND, and much more. Below are the significant benefits of DAO and DAO crypto tokens in the real world.
● Transparent, Autonomous, and Decentralized:
Decentralized Autonomous organizations are transparent, autonomous, and decentralized, enabling the community members to take ownership and maintain protocols.
With the blessing of smart contracts, DAOs are automated, and every decision within the community is automatically executed. Unlike traditional companies, the costs from third-party transactions are eliminated, and the DAO only pays for its presence on the blockchain, which leads to growth in profits.
● Investment returns are probable:
When token holders also own a governance token in the DAO, it is similar to holding equity shares in a start-up. All of us know that having company shares is highly valuable if the start-up succeeds.
Overall the DAO crypto tokens are different from the non-DAO project because of the reward system in DAO. Moreover, the token holders are consistently rewarded with a small amount of the transaction cost on exchange. With these perks in mind, the DAO usually has a stable token user community with a knack for long-term investment.
● Led by a community of shareholders:
Every token holder in the DAO has the power to decide on the community. The decision-making power is allotted to the token holder as per the proportion of tokens held by the member.
But that doesn’t mean they will have more rights or privileges. It is their primary right to bring about changes to lead the development of the protocol, which will make the protocol more rewarding and a democratized place.
Let’s now dive into creating a DAO-powered digital community with such benefits in mind.
How to Create a Digital Community Powered by DAO:
Check out the five reliable steps to begin a digital community using DAO.
1.Create an Idea
If you want to set up a community of your own, first define it. The primary step is to start ideating and form a unifying definition. When asked, “what is the motive behind setting up the community?” you should be able to convey your notions and perspectives about the community you wish to start. But you would be perplexed to know that many people won’t answer this simple question.
Thus they must explore existing communities to understand the reason behind the existence of various communities. For instance, DAOHaus is a project by the communities. By exploring different communities, sometimes people realize that they only have to join an already existing community rather than creating one.
2.Pen down the Thoughts:
You need to jot down all the ideas after the ideating and solid reasons for setting up a community. It doesn’t mean that you need to draft a manifesto or lay down a constitution for the community.
You simply have to write a short document that explains the concept of your community. The best approach to documentation would be an iterative process. In this, you would have to present living documents, contribute to them from time to time and edit it as the community grows.
The gist of this step is to furnish your thoughts about the idea behind the community. By noting down the ideas, your thoughts run deeper, increasing the chances of a potential DAO community.
3. Select a platform to meet and greet:
Once you have assembled the community, it is most definite that you visualize what you plan on doing in the future. If your community members have ideas that resonate, you have already given your best in drafting the ideation document.
Thus you could select platforms like Discord, Telegram, Crypto Voxels, e-mail list, group text, or whatever works for your community.
4. Schedule calls or meetups:
It is voluntary to call or meet up with the DAO community members. There are a lot of DAO-powered digital communities that lose track after following steps 1–3.
But getting on a call and communicating is a powerful move to keep the momentum of the community going. The communities that set up regular calls and video meetups easily transition from organizations to action start-ups.
5.The final launch of DAO:
Once all the steps are effectively executed, you need to congratulate yourself for setting up a robust community of committed members. Now that you have gone from assembling the people to getting them to perform tasks, it is the moment you have been waiting for: setting up a decentralized autonomous organization.
DAOs are indeed software projects but truly magical tools. Here you need to handle the budget, work as a creative agency, or maybe your idea behind the DAO was to meet up and review a book and reward attendance simply.
Whatever may be the concept behind the DAO, keep the community active by giving every member transparency into the community’s ownership and operations.
The Future of DAO:
DAOs are the safest place to collaborate and work with strangers over the internet. What does the future hold for DAO? Do you think that it will take over traditional business models?
While there are many concerns raised about the security, structure, and legal aspects of DAOs, investors and data analysts believe that transparent, automated, and decentralized organizations are needed in the future. They even envisaged that these organizations could potentially replace the traditionally designed businesses and organizations.
bitsCrunch is a booming marketplace for digital assets like crypto and NFTs. They aim to build a safe ecosystem for NFT collectors and creators. With their latest innovation in AI-based tools, enthusiasts can rest assured about wash trading on the NFT marketplace, the fair price of digital assets, and digital art forgery.
Do you want to keep track of all your favorite collections on NFT? Do you need a real-time NFT portfolio tracker? Do you need a total value of your NFT collections and holding?
The most prominent answer for these questions is bitsCrunch. To know more, visit us at https://bitcrunch.com/. Check our services on the website & feel free to contact us for any queries related to the NFT ecosystem.