Understand Decentralize Autonomous Organization (DAO) is simple language

    

Decentralized Autonomous Organizations (DAO)    

Now crypto world is talking about DAOs but many people don't know What is DAO? why we need DAO? how DAO work? how we get DAO membership? etc. So here we will discuss about DAO and get the answer of your question.

 

What is DAO?

DAO is nothing but Decentralized Autonomous Organization which is effective and safe way to work with like-minded folks (Similar opinion people) around the world.

I will start with an example which will give you brief idea.

Suppose there is an Organization (Traditional Centralized System) in which a hierarchy works, that means, the top position of the organization belong to CEO of the company, after that regional manager is below it then zonal manager after that the assistant manager then associate. if the organization has to take a decision, the board of director will conduct meeting and if any result comes out, On which the final decision belong to CEO, depends on the decision of the CEO rest thing will happen.

That means, here the system is centralize where one person will decide and rest will follow. This is how any organization work


 

Why we need DAO

Suppose there is a DAO and 100 people are associated with that DAO group and then group has to take a decision, then the vote of the people associated with group will matter because whatever the decision will be, it will be collectively and only the vote of the people connected to that group will finalize whether the work on which voting has taken place will be done or not. Here, a single person can't decide, the group voting will decide,

"That's the beauty of DAO is every people of this group are owner itself"

 

How DAO work?

If you start an organization then you need people who will support you in your business, but when it comes to partnership and investment then you need people with trust. but When it comes to Dao, you don't need people with trust because all that has to be done is done by the smart contract on which DAO is built.

Dao is built on the smart contract, the smart contract will defines the rules of the organization. No single person can send money to anyone without the approval of the group, if someone does this, then the transaction will fail. Because once the DAO rules are live in the smart contract which is now publicly available, then rules cannot be changed without group voting. After group voting the rest thing will decide.

 

How we get DAO membership?

If you want to join any DAO group then you can join it in two ways.

1 By Token.

2 By Shares.

By Token

In the token base you will hold the governance token of the platform whose DAO you want to join and holding your token will give you full access to voting.

By Share

In the membership of these shares, you will have to take the shares of that DAO group, so that you can participate in the voting.

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