Dealing with DAOs 😎

These days Decentralised Autonomous Organisation (DAOs) are in the news trending all over the place but wait what are DAOs? Let us encash the concept of DAOs 🔥

What is a DAO?

A decentralized autonomous organisation is an entity structure in which tokenholders participate in the management and decision-making of an entity. There is no central authority of a DAO; instead, power is distributed across tokenholders who collectively cast votes.

All votes and activity through the DAO are posted on a blockchain, making all actions of users publicly viewable.

How does a DAO Work?

DAOs rely heavily on smart contracts. These logically coded agreements dictate decision-making based on underlying activity on a blockchain. For example, based on the outcome of a decision, certain code may be implemented to increase the circulating supply, burn of a select amount of reserve tokens, or issue select rewards to existing tokenholders.

Benefits of a DAO

• It promotes and focuses on individual participation.

• The concept of a DAO encourages people from all over the world to seamlessly come together to build a single vision.

• Within a DAO, votes are cast via blockchain and made publicly viewable.

That's it for the day, Web3Shala Signing Off ✌🏻

Have a nice day :)Keep Learning 🙏🏻