What is the essence of the DAO organization? Learn more about the DAO organization in one article

Blockchain enables DAO to have decentralized leadership and management. Decisions regarding the governance and rules of the DAO are made by the decentralized community associated with the project. Like any other organization, a DAO is designed around a mission or mission. The DAO's business or operational logic is programmed into it and updated by the community using governance mechanisms.

What is the essence of the DAO organization?

The essence of DAO is a decentralized organization, a group organized around a task, coordinated and autonomous through a set of shared rules executed on the blockchain. DAO achieves "decentralization" by handing decision-making power to stakeholders rather than executives or board members; "autonomy" lies in enabling users to run applications on a publicly accessible blockchain through smart contracts. If certain conditions are met, relevant actions and results are automatically triggered.

Previously, the platform currency issued by the centralized platform was once considered to be a platform governance token, and the holders can enjoy the dividends of the rapid development of the platform. In fact, platform operators and platform currency holders sometimes have inconsistent interests, resulting in platform currency holders being unable to fully enjoy the platform’s dividends. For this reason, it is particularly important to delegate power to stakeholders. Compared with centralized platforms, the interests of DEX operators and platform currency holders are more consistent, and evolving towards a DAO organization is in the interest of most people.

How does the DAO organization work?

Users can acquire shares in the DAO by purchasing or earning DAO tokens, thereby gaining voting rights. Users with voting rights can participate in the formulation of community governance proposals. This design helps ensure that investors have a certain interest in the proposal before deciding to vote, and effectively prevents irrelevant users from sending invalid proposals. The DAO token was established to encourage users to actively participate in community activities.

By design, DAO has a fund pool within it. Treasury bonds are typically held in the form of cryptocurrencies, but I believe that in the future DAOs will also have the ability to hold fiat currencies or fiat-based stablecoins. Anyone using a blockchain browser can view DAOs stored on the public blockchain; this has positive implications for DAOs built around social or charitable causes.

Smart contracts are the key tools for DAO operations. By programming smart contracts, execution logic can be triggered based on specific events. A triggering event could include a stock or commodity price reaching a preset level, or reaching a specific date and time. When these conditions are met, the smart contract will automatically perform corresponding operations to realize automated programmatic transactions. This approach enables DAO to automate decision-making and execution without the intervention of intermediaries, improving efficiency and transparency. The programming of smart contracts can also ensure the fairness and accuracy of contract execution, eliminating errors and delays that may be caused by human factors. Therefore, smart contracts play a

role in the operation of DAO

Smart contracts can be activated when signals from the outside world are transmitted to the DAO through sensors or manual input. This data is fed into the DAO through the oracle, which is then processed by the DAO according to its logic and business rules, and instructions are issued for execution in the real world.

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