What is the Decentralized Autonomous Organization (DAO)?
A DAO called a Decentralized Autonomous Organization, is community conduct with no central authority. DAO is fully autonomous and transparent. it is based on open-source code and is fully decentralized.
The Dao was developed by developers to automate decisions and facilitate cryptocurrency transactions.
The DAO was designed for Dao is believed they could eliminate human error or manipulation of investor funds by making decision-making power into the hands of an automated system and crowdsourced process. as well DAO allows investors to send money from anywhere globally anonymously.
Why do we need DAOs?
With DAOs, anyone can make trust because the DAO's code is 100% transparent open-source, and verifiable for anyone.
Normally, Dao is fiat and fully democratized, if you want to change the code in DAO you are required to vote by members for implementation.
Types of DAO
There are different types of DAOs available, Let's explore the most popular DAO.
- AMM (PROTOCOL) DAOS
- GRANT DAOS
- SOCIAL DAOS
- COLLECTOR DAOS
- VENTURE DAOS (INVESTMENT DAOS)
- MEDIA DAOS
- SOCIAL MEDIA DAOS
- ENTERTAINMENT DAOS
AMM (PROTOCOL) DAOS
AMM means automated market maker These DAOs use smart contract protocols to bring decentralized financial services to users.
AMM Dao is also known as the first protocol DAO, launching the DAI stable coin and changing Defi, AMM DAO projects is one of the most successful and innovative apps on Ethereum having 1000 projects integrated DAI into their apps.
Grant DAOs are the earliest use, in a Grant DAO, the community donates funds into the grant pool and votes on allocating and distributing the funds. The purpose of these DAOs is to new Defi projects, by submitting a funding application.
Aave Protocol is used Grant DAO infrastructure to nurture and build its community of DeFi projects. this project built a lending pool ecosystem, which means users can lend their funds or borrow from the lending pools instead.
The intention of Social DAos is to people together in online communities, some are explicitly built to focus on a particular objective like preserving arts and culture or pursuing projects connected with their community values.
Collector DAOs have been making big moves with acquiring cultural collectibles for their community. Its very first purchase was the notorious Wu-Tang Clan.
Collector DAOs don't have a central governing authority and network protocols are decided with the open voting systems.
Venture DAOs are called Investment DAOs this DAO you dream big to attain the impossible. also, these DAOs often raise hundreds of millions of dollars to raise demand for owning a portfolio we couldn't invest in.
Venture DAOs are transparent and inclusive often open to anyone, anytime and anywhere.
Media DAOs allow content to be driven by the community, rewarding content creators in the native token and removing advertisers from the equation. it's no secret that media platforms follow a top-down structure, producing content with a central agenda.
Media DAOs are an incubator for content creators, who are rewarded with native tokens for the content they produce.
SOCIAL MEDIA DAOS
Social Media DAOs are a playground for those of us who want a hub to come together and socialize without the targeted ads and politically charged news feeds.
Entertainment is decentralized entertainment Entertainment DAOs open up a whole new creative outlet for the artist.