What Is A DAO – Driving The Autonomous In Decentralized World  


25 March 2022

What is a DAO? The idea of a decentralized autonomous organization (or DAO) emerged in 2016 as interest in cryptocurrency decentralization grew.

One of the most fundamental features of digital currencies is decentralization. They are not stored in one location but on multiple computers and networks. This is not the central bank or the state. Cryptocurrencies may leverage their decentralized nature to reach levels of anonymity and security not possible with ordinary currency.

Decentralized autonomous organizations (DAOs) offer a secure and efficient way to collaborate globally. Consider them a co-op-owned and operated internet-native company. They have hidden treasuries that only the organization may access. Proposals and voting ensure that everyone in the organization has a voice.

No unscrupulous CEO or shady CFO may allow spending based on their whims. Everything is open, and the DAO’s spending rules are coded. Via this post, bePAY’s going to explain what is a DAO?

What Is A DAO?

DAO meaning – A DAO, or “Decentralized Autonomous Organization,” is a community-led organization that lacks a centralized power structure. An autonomous and transparent system may be created by using smart contracts, which establish and implement the rules of play, and which can be audited at any time.

Members of a Decentralized Autonomous Organization (DAO) are ultimately responsible for making important choices concerning its long-term destiny, such as technological upgrades and treasury allotments.

In general, members of the community make suggestions for how the protocol should operate in the future and then vote on those suggestions as a group. The smart contract rules accept and enforce proposals that reach a certain threshold of agreement.


What is a DAO?

Under this paradigm, the traditional hierarchical structures seen in major organizations are replaced with frameworks that foster community cooperation. The protocol is overseen by each member of the DAO at some level. The alignment of incentives is one of the framework’s many appealing features. To put it another way, it is in the individual’s best interest, to be honest in their vote and only support ideas that benefit the protocol.

Increasing the value of the tokens owned by each DAO member becomes easier if the protocol is strong and well-maintained. Because of this, token holders benefit from the success of the system.

How Does DAO Work?

As stated before, a DAO is a collection of people that owns the organization. A DAO may be joined in numerous ways, mainly by owning a token. DAOs work through smart contracts, which are simply bits of code that run when certain conditions are satisfied. Smart contracts are currently widely used on several blockchains, while Ethereum was the first.

These smart contracts govern the DAO. Those who own a DAO have voting rights and may change the organization’s governance by proposing new rules. This approach avoids DAOs from being bombarded with proposals: The smart contracts specify how that majority is chosen.

DAOs are transparent and autonomous. Their open-source blockchains let anybody inspect their code. Moreover, the blockchain records all financial transactions.


DAO operational method

When it comes to communal decision-making, DAOs rely on an internal treasury to keep their digital currency, which members may only access with community consent. There are three phases involved in building and launching a distributed autonomous organization:

  • Creating smart contracts: The DAO’s developers write the smart contracts that govern the group’s regulations and determine the group’s purpose. Because the DAO can only be updated by group vote after it is launched, this step requires a lot of testing of the code.
  • Fundraising: Members must contribute to the DAO’s money supply, which must be replenished from time to time. When individuals agree to acquire tokens to participate in the organization, they’re doing so because they believe in its goals. This period is also a good time to set up governance guidelines.
  • Launching: The DAO’s code gets published into the blockchain for the first time. Only the stakeholders’ aggregate vote will be able to alter it from this point forward. The project is no longer under the direction of its original creators.

Why DAO Is Necessary?

Starting a business with someone demands a lot of confidence in the individuals you deal with. But it’s difficult to trust someone you’ve just met online. With DAOs, you just need to trust the code, which is 100% transparent and provable by anybody.


Decentralized autonomous organization

This paves the way for worldwide cooperation and coordination.

DAO Traditional Organisation
In most cases, it’s flat and democratic In most cases, it’s a top-down structure
For any modifications to be adopted, members must vote on them. Depending on the organizational structure, a single party may be required to make changes, or a vote may be proposed.
No trustworthy middleman is needed to count the votes and apply the decision. As long as voting is permitted, the results of the vote must be manually managed.
The provision of services is done decentralized and automatically. Requires manual handling or automated central control, making it vulnerable to abuse.
Everything is accessible to everyone who wants it. In most cases, the public has no access to an individual’s activities.

DAO Meaning To Real World

What Is A DAO Example?

Here are some instances of how you might utilize a DAO to assist clarify:

  • A charity may take contributions from anywhere in the globe and select how to spend them.
  • Create a network of freelancers who share office space and software subscriptions.
  • You might build a venture fund that pools funds and votes on which firms to sponsor. Repaid funds might be shared among DAO members.

DAOs Are Being Used In The Real World?

While DAOs are still in their early stages, they are already being utilized for a wide range of activities like investing in philanthropic causes and generating money for worthy causes. Donations may come from anywhere in the globe and the members of a DAO can select how to spend them, for example.


DAO Utilities

Using cryptocurrencies on an internet-based organization, you may become a co-owner of an artist’s music. Jenny DAO got its first NFT, a Steve Aoki and 3LAU original, in May of 2021. It’s a metaverse corporation that offers NFTs in fractional ownership. By using Unicly protocol’s smart contracts, its members will be able to monitor the purchase of NFTs and the vault to which these NFTs will be added.

Top Best DAO Crypto List

Look at this best DAO crypto list that may come into place:


One of the world’s most popular decentralized crypto exchanges has also launched the world’s largest decentralized autonomous organization (DAO). An important DAO was founded when Uniswap published its governance token in September 2020.

Uniswap’s major features as the finest DAO project are on Uniswap users’ control over the DeFi tool. Some stablecoin swaps saw an exponential increase in volume after Uniswap voted to reduce trading costs. Uniswap’s dominance over the DeFi sector is thus readily apparent.



>> Read also: What is UniSwap and how does it work?


In a DAO token list, Maker would be an easy choice. Introduce real-world assets into the crypto realm. The DAO Maker token, in reality, intends to become the world’s biggest central bank for DeFi.

One of its main goals is building DAI, the world’s biggest decentralized stablecoin. DAI, Maker’s algorithmic stablecoin, has shown tremendous potential as the biggest central bank in the DeFi. Stablecoin’s market value has risen to about $9 billion.


BitDAO is the next most popular DAO project to emerge. Almost $2.5 billion has been invested in different DeFi initiatives by this treasury. As one of the most innovative DAOs, BitDAO has built a strong name for itself in the community.

A market capitalization of $1.12 billion and a cash reserve of over $2.5 billion have been successfully amassed by the company. Most importantly, BitDAO is a potential example of a DAO in which large investors have shown an interest in participating. To provide an example, a Singapore-based crypto exchange called ByBit has devoted 0.025% to BitDAO.




A tutorial on “What is the DAO crypto?” would be pointless if you missed Aragon. As a decentralized autonomous organization (DAO), it aims to facilitate the introduction of DAOs by enabling others to do so. It is Aragon’s goal to make it possible for clients to connect with anybody from any place in a DAO architecture. More than $350 million is now locked into Aragon’s over 1500 DAOs.

Holders of Aragon’s DAO token, ANT, may express their agreement or disagreement with the decisions that influence operations by voting with their tokens. Token holders may build or join Aragon-based DAOs using one of the top Aragon DAO tokens. Aragon Fundraising also aims to allow DAO members to raise money for their organization. It’s a win-win for everyone. In terms of market capitalization, ANT is one of the most popular DAO tokens on the market.




DeFi’s future may be propelled by the finest DAO projects, as is the case with Dash Dash Dash. Faster transactions are offered by a decentralized digital payment initiative compared to Bitcoin. DASH is the DAO’s utility token, and it has seen recent growth that seems good.

Can You Invest In DAO?

Can you invest in DAO? The answer is absolute yes. Those who want to start working with a DAO should keep these things in mind:

Setting Objectives

DAOs are motivated by a clear set of goals. When choosing which group to join, it is important to consider your interests and skills.

Determining Which DAO Best Suits Your Needs

There is a wide range of DAOs. DAO list and DeepDAO can help you identify a DAO whose goals fit with your own. Most organizations will have a charter or mission statement that explains their objectives, principles, and governing structure. These will give you a sense of what to anticipate and how you can help.

Becoming A Member Of DAO

Participating in a DAO’s community will give you a better feel of the organization’s culture. Discord is the most frequent starting location for new members of the DAO, where you may introduce yourself, join in on discussions, and learn how to participate. Identify ways that you can help.


Can you invest in DAO?

Involving Yourself

A wide variety of skillsets may help DAOs, from project management to design, although they are most popular among coders. What you can and can’t contribute will depend on your ability and the requirements and governance of the community.

Consider Your Surroundings Carefully

DAOs have their own set of advantages and allure. You’ll have the opportunity to make a difference and earn some money if you join one of these organizations. On the other side, there’s always the chance of a financial setback or a coding error. They may even run a whole squad at the Super Bowl in the future, assuming they keep up to their commitment and don’t merely promote there.

FAQs About DAO

How Do I Get A DAOmaker?

One of the most frequently asked questions is how do I get a DAOmaker? You can easily get DAOmaker tokens by signing up an account on exchanges like Kucoin,, Hotbit, etc, or on Decentralized exchanges.  

What Is The Primary Purpose Of DAOs?

New opportunities for international cooperation and coordination are opened up by decentralized autonomous groups. DAOs may remove the necessity for trusting other members of the organization if their code was open and verifiable. An autonomous organization is a kind of decentralized government.


FAQs about DAO

Does DAO Really Decentralized?

Decentralization is a powerful feature of any project involving a decentralized autonomous organization. Even while all network members should have a vote, this practice seldom leads to effective solutions. Instead, a chosen few would benefit from enhanced voting rights in the event of a good conclusion, thereby undermining the fundamental principles of decentralization in the process.

What Are The Different Types Of DAO Membership?

Membership models may be created by DAO developers. Having the ability to vote and participate in other DAO functions is made possible by the rights granted to members. Token-based membership and share-based membership are two unique approaches for DAO membership.

Final Thoughts

Now you’ve learned everything you can about what is a DAO? The concept of a decentralized autonomous organization (DAO) has set a new precedent for managing modern organizations. DAOs may open up new possibilities for productivity by encouraging teamwork and open communication. In addition, you should keep in mind the potential benefits of decentralized autonomous organizations (DAOs) as a foundation for crypto enterprises.

Security issues would also be taken into account if DAOs were implemented. All you have to do is put your faith in the code to see real progress in your organization’s governance. 

Even though there are several legal and security problems, some experts and investors anticipate that this sort of organization may ultimately rise to prominence and even replace conventional enterprises.