A Decentralized Autonomous Organization (DAO) is collectively owned and operated by its members in line with a set of protocols embedded into blockchain smart contracts or other consensus mechanisms. At its core is a democratic voting system that controls the decision-making process and ensures every member has equality.
At the core of any DAO are smart contracts. These contracts lay out the rules of the DAO and its treasury. Only by voting can these rules be changed, outside of this if anybody tries to change the rules they will inevitably fail. 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 DAOs 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, you can't just edit the code (the DAOs rules) without people noticing because everything is public.
There are many reports of global companies being found doing the wrong thing, often a brief scandal follows but once the storm has settled the practice resumes unchallenged. Now imagine if these companies were totally transparent, with each decision democratically voted on by a decentralized network and every transaction publicly accessible and executed by a smart contract. This is what DAOs offer. The potential is clearly enormous, even revolutionary, many challenges faced by governments and businesses worldwide could be solved by the decentralized coordination of a DAO.
- Members decide how it operates and how it’s future should look.
- Decentralized, democratic, distribution of funds
- Increased truth, transparency, and trust gained from blockchain, cryptography, peer-to-peer networks, and game theory.
- A means to an end of centralized, hierarchical management structures.
What more is there to say, it's a revolution, out with centralized, corruptable, corporate, hierarchical management structures and in with decentralized, community-driven, fair, and inclusive organizations. DAOs simply offer a brighter future for us all. Keep turning to find out how you can embrace decentralization with Zinnia.