The DAO Is a major Concept in 2022

What is

DAo?

A DAO, or “Decentralized Autonomous Organization,” is a community-led entity with no central authority. It is fully autonomous and transparent: smart contracts lay the foundational rules, execute the agreed upon decisions, and at any point, proposals, voting, and even the very code itself can be publicly audited.

How Does A

DAO

Work?

1. The rules of the DAO are established by a core team of community members through the use of smart contracts. 2. Once these rules are formally written onto the blockchain, the next step is around funding: the DAO needs to figure out how to receive funding nd how to bestow governance.

3. This is typically achieved through token issuance, by which the protocol sells tokens to raise funds and fill the DAO treasury. 4. In return for their fiat, token holders are given certain voting rights, usually proportional to their holdings. 5. Once the code is pushed into production, it can no longer be changed by any other means other than a consensus reached through member voting.

Notable advantages of using a DAO

1. The autonomous structure of DAOs makes them open to transparency. 2. There is no long, arduous process required to accept innovations with no central authority. 3. DAOs solve the principal-agent problem. There is no power play as members see themselves as equally responsible for the organization's progress.

Disadvantages of using a DAO

1. The major disadvantage of the DAO is that it needs everyone to be involved. there are times when the codes written for the smart contracts are buggy and have loopholes. 2. The legal terrain for DAOs is still subject to the regulatory frameworks of different nations.

Gaming and DAOs

In 2021, blockchain gaming took the world by surprise with a high rate of adoption and acceptance. It's great just being able to play a game and earn value from it on the blockchain, but playing a game that utilizes the benefits of a DAO for its community is even better.

Why DAOs are the future?

In 2021, blockchain gaming took the world by sThe two unique models for DAOs are the token-based membership and the share-based membership, and both of them have team-centric motives — not a sign of superiority complex.