DAO (Decentralized Autonomous Organization) is a methodology for quickly organizing a large group of people to achieve certain goals and tasks.
Decentralization.
In DAO the control is distributed among all members of the team, not one main figure. Most modern companies, or any business, have a strict, hierarchical, vertical management structure with bosses, presidents, and boards of directors. Decentralized organizations have a flatter management system, where each person has a voice and the ability to make a proposal, to change or improve the organization.
Autonomy.
The classic day-to-day functioning of an autonomous organization, involves no intermediaries and full or partial automation. For example, if there was a McDonald's DAO: the order would be taken through an app, burgers would be prepared by robots, and deliveries would be made by cars with autopilot, transporting ingredients, from fully automated production facilities. All of this would be prescribed and enforced through smart contracts. The people in this fast food of the future would make decisions by voting: to open new restaurants, add items to the menu or change the cost of items.
The number of votes of a DAO member could be measured by the number of control tokens in his wallet. Also there can be an equal voting, where everyone has one, equal vote or a quadratic voting scheme can be applied. These are not all possible options and we will consider them on specific examples of live DAO. And blockchain and smart contracts guarantee, transparency and no falsifications.
Why do you need it?
Already now most of the crypto projects and investment funds, are DAO or moving to this type of management. By understanding their structure - you will understand the market better.
DAO is politics and democracy. Politics can also be interesting, especially when it is transparent and your decisions really influence something.
DAOs - bring money not only to their creators, but also to ordinary members of the community. Organizations have their own funds and grants, if you have knowledge in various fields, organization and management skills, as well as desire to participate in the development of web 3.0, DAO is your chance to realize it.
In the next post we will discuss DAO, using one of the largest and fastest growing blockchain networks as an example, and how anyone can participate in the development of DAO, invest freely in the development of the project and get a fair pay for it.