Understanding DAOs

A DAO is a digital entity that operates autonomously, governed by a set of rules encoded on a blockchain. It eliminates the need for centralized control, allowing decision-making and operations to be transparent and community-driven. DAOs enable participants to engage in a wide range of activities, such as voting, proposal submission, and funding allocation, all through smart contracts. With their decentralized nature, DAOs provide a framework for collective decision-making, promoting transparency, inclusivity, and trust. By leveraging blockchain technology, DAOs have the potential to revolutionize governance structures across industries, fostering innovation, collaboration, and community empowerment.

There are countless DAOs in the world now; all popular cities have a DAO named after them.

Let’s consider a real-life scenario where a DAO could be applicable for a a community group: a neighborhood or community association.

In a traditional neighborhood...