DAO, A Paradigm Shift in Governance
Imagine an online platform, without a boss or central authorities, where you have the right to propose and vote on how the platform should go. Not just you but every single person who own the platform token. And this is what DAO is offering, a digital democracy.
DAO is a Decentralized Autonomous Organization that runs on the blockchain and uses smart contract to execute rules and decisions of the organization. This kind of organization is open, transparent, decentralized and community-driven, where everyone participate in the development of it without any centralized authority.
With a DAO, all actions and transactions within the organization are transparent and recorded on the blockchain, allowing anyone to verify and audit them. Furthermore, DAOs provide an inclusive platform where individuals from diverse backgrounds and status can share their vision and values, join the organization, and contribute to its activities.
So now the question is, if there’s no central authority to make decisions and manage the organization, how a DAO governs itself?
A DAO uses governance tokens to give the voting right to its holders, once you own a governance token of a DAO you can make suggestions in form of proposal and vote on other proposals.
With proposal the DAO members can propose changes, improvements, or actions that they believe will benefit the organization. Once a proposal is submitted, it goes through a review and evaluation process by the DAO community. This process may involve discussion, debate, and voting to determine whether the proposal should be accepted, rejected, or modified. The specific procedures and voting mechanisms for DAO proposals can vary depending on the governance framework and rules established by the DAO.
When a proposal is accepted and implemented, the smart contract execute automatically the new proposed rules and ensure that every person interacting with this decentralized organization respect the rules.
As you can see, DAOs offer a new way of management that lets anyone have an impact in a decentralized and democratic way. If you are interested in joining a DAO, I suggest to you this website https://messari.io/governor/daos where you will find many DAOs in many categories (music, art, development, education, gaming, Defi, public good funding, sport, science and many more) and discover a new way of working and living that suits your vision and values.
