In 2021, cryptocurrencies have been one of the biggest trends to shape technology and finance and according to major news headlines, decentralized autonomous bodies (DAO) will become a force to be reckoned with in crypto by 2022. Mark Cuban called them the “ultimate combination of capitalism and progressivism”. However, while DAOs are relatively easy to understand conceptually, they are a segment of the crypto market in a state of rapid change, with many innovative use cases emerging. However, setting up and running a DAO also comes with its own set of unique challenges, which also change and develop over time.
The purest definition of a DAO is inherent in the name. An organization is a group of people and entities with a common goal or idea. It is decentralized, so there is no CEO or board of directors responsible for making decisions, and it is autonomous, meaning it governs itself. Self-governance means that there are governance rules programmed into blockchain-based smart contracts, and DAO members vote on matters affecting the DAO according to those rules.
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