DAO Infomation
Decentralized autonomous organizations
What is DAO?
DAO are an effective and safe way to work with like-minded folks around the globe.
Think of them like an internet-native business that's collectively owned and managed by its members. They have built-in treasuries that no one has the authority to access without the approval of the group. Decisions are governed by proposals and voting to ensure everyone in the organization has a voice.
There's no CEO who can authorize spending based on their own whims and no chance of a dodgy CFO manipulating the books. Everything is out in the open and the rules around spending are baked into the DAO via its code.
DAO Introduction
Wikipedia defines DAO (Decentralized Autonomous Organization) as an organization represented by rules encoded as a transparent computer program, controlled by the organization members, and not influenced by a central government.
As the rules are embedded into the code, no managers are needed, thus removing any bureaucracy or hierarchy hurdles. Like how DeFi is programmable money and how NFT are programmable, DAO are organizations of people.
With its governance and operations written in smart contracts, DAO ensure that its objectives and mission are immutable, decided by a community of DAO members.
DAO financial transactions and rules are recorded on a blockchain. This eliminates the need to involve a third party in a financial transaction, simplifying those transactions through smart contracts. The firmness of a DAO is a smart contract.
The smart contract represents the rules of the organization and holds the Organization’s storage. No one can edit the rules without people noticing, because DAO are transparent and public.
DAO projects are getting a lot of attention lately because of the large balance sheets (called treasuries) that they command - derived from holding a portion of the projects’ native tokens.
Some of these DAO have billions of dollars of idle capital, waiting to be deployed in order to generate optimal yield. The beauty of DAO is that the community members not just the core dev team have the power to deploy its capital in any way that they wish.
DAO envision a collective organization owned and managed by its members with all of them having a voice.
That the reason why we use DAO in our Multiverse. For better governance and future development.
Built By Community, Govern by Community
How do DAO work?
The backbone of a DAO is its smart contract. The contract defines the rules of the organization and holds the group's treasury. Once the contract is live, no one can change the rules except by vote. If anyone tries to do something that's not covered by the rules and logic in the code, it will fail. And because the treasury is defined by the smart contract too that means no one can spend the money without the group's approval either. This means that DAO don't need a central authority. Instead the group makes decisions collectively and payments are authorized automatically when votes pass.
This is possible because smart contracts are tamper-proof once they go live. You can't just edit the code (the DAO rules) without people noticing because everything is public.
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