{"id":9992,"date":"2022-03-07T23:35:01","date_gmt":"2022-03-07T23:35:01","guid":{"rendered":"https:\/\/egrowonline.com\/?p=9992"},"modified":"2022-03-07T23:35:01","modified_gmt":"2022-03-07T23:35:01","slug":"learn-the-basics-of-daos-and-how-they-work","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=9992","title":{"rendered":"Learn the basics of DAOs and how they work"},"content":{"rendered":"<p> <br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDMvZGRiOGQxNDUtMTNhMi00MjEzLTg5ZTEtNDhlM2YxZjIxYjY4LmpwZw==.jpg\" \/><\/p>\n<div data-v-128018ef=\"\">\n<p>In the latest Cryptopedia episode, viewers can get a succinct and informative overview of decentralized autonomous organizations, or DAOs. Cointelegraph&#8217;s Jackson DuMont believes DAOs have the power to &#8220;completely transform how work and social collaboration are organized.&#8221;<\/p>\n<div class=\"jeg_video_container jeg_video_content\"><iframe loading=\"lazy\" title=\"What is a DAO? All you need to know about decentralized autonomous organizations | Cryptopedia\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/ISSGwL7P9cc?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<p>What makes this type of organization both decentralized and autonomous? The answer is smart contracts on the blockchain. Fundamentally, a DAO runs on the lines of computer code written on smart contracts that anyone can interact with in the same way.<\/p>\n<p>DuMont described the three major steps necessary to launch a DAO. The first step is creating that smart contract. The second step is to determine how to receive funding and enact governance, usually done by creating a token. Lastly, the DAO is deployed on the blockchain.<\/p>\n<p>The most popular use case of a DAO is crowdfunding.\u00a0The money pooled together is put into a smart contract that, in return, issues tokens to DAO members. Tokenholders, who own equity in the DAO, can then vote on how spend the money and vote to appoint delegates.\u00a0<\/p>\n<p>In the case of <a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/breaking-constitutiondao-fails-to-win-sotheby-s-auction\" rel=\"noopener\">ConstitutionDAO, members raised just over $49 million<\/a> to buy an original copy of the U.S. Constitution but were outbid at auction. Another example is Blockbuster DAO, which aims to raise enough money to <a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/dao-aims-to-raise-5m-to-resurrect-blockbuster-video\" rel=\"noopener\">buy the video rental brand from Dish Network<\/a> and turn it into a streaming film studio.<\/p>\n<p>DAOs intend to reduce the risk of poor leadership through horizontal leadership, or flat hierarchies that level out the playing field of power.\u00a0The reach is infinite and no matter where a member is located, everyone is bound by the same rules of the smart contract. Trust is placed in code rather than people.\u00a0<\/p>\n<p><strong><em>Related:\u00a0<\/em><\/strong><a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/53-million-raised-for-assange-showed-the-power-of-daos\" rel=\"noopener\"><strong><em>$53 million raised for Assange showed the power of DAOs<\/em><\/strong><\/a><\/p>\n<p>Of course, there remain risks and concerns over legality and security. One notable example of a DAO gone wrong is The DAO, which was hacked for $50 million in 2016. A recent report claims to <a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/journalist-alleges-mimo-capital-co-founder-was-behind-2016-exploit-of-the-dao-report\" rel=\"noopener\">reveal the identity of the alleged hacker<\/a>.\u00a0<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/cryptopedia-learn-the-basics-of-daos-and-how-they-work\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the latest Cryptopedia episode, viewers can get a succinct and informative overview of decentralized autonomous organizations, or DAOs. Cointelegraph&#8217;s Jackson DuMont believes DAOs have the power to &#8220;completely transform how work and social collaboration are organized.&#8221; What makes this type of organization both decentralized and autonomous? The answer is smart contracts on the blockchain. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9993,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[38],"tags":[5439,4957,2594,348],"class_list":["post-9992","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-basics","tag-daos","tag-learn","tag-work"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/03\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDMvZGRiOGQxNDUtMTNhMi00MjEzLTg5ZTEtNDhlM2YxZjIxYjY4LmpwZw.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/9992","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9992"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/9992\/revisions"}],"predecessor-version":[{"id":9994,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/9992\/revisions\/9994"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/9993"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9992"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9992"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9992"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}