Last Updated: December 23, 2021

DAOs are Evolving

What is a DAO?

DAO is a new term that is coming up more and more in conversations around crypto. But what is a DAO? DAO stands for decentralized autonomous organization. It is evolving. A group or organization that can autonomously operate. A DOA can be computers or humans.


In the case of a DAO, autonomous means something closer to automation similar to smart contracts or algorithms. These algorithms might break but as long as it is doing it’s sequence it will keep doing it, taking out human error. This is important because it has the ability for is to act without outside factors. Functions off math vs emotions with a predicted outcome and without having a leader.


Decentralized can be thought of as something beyond public businesses. There is an element of being distributed beyond boarders. You may not know where or who people are but it doesn’t necessarily matter.

How Does a DAO function?

Someone can buy tokens in a DAO which gives them a vote and a small amount of control in how that organization runs. There are no barriers to join a DOA and it is easy to get in and out when you want.

This may have you wondering how to join a DAO? Token is a popular way but new ones are coming up as well. Tokens allow a DAO to measure votes because each token has the equal vote. Token is a great way to get money for the DAO as well. In a DAO there is hyper capital efficiency to get things done.

Is there a ROI model or profit motive for joining a DAO? Tokens do not act like bitcoin or stocks. This being said, depending on the DAO and the way it chooses to be run, members can get paid dividends.

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