DAO (#decentralized autonomous organization) is a decentralized autonomous organization, which is managed by means of smart contracts.
This system is as transparent as possible, because all the rules are written in the code. The code, in turn, is publicly available – anyone can view it and even use it to develop their project.
Holders of DAO’s native tokens vote on proposals designed to benefit the entire community. This creates a strong contrast to today’s corporations, which are run by a closed circle of individuals.
**How do DAOs work? **
A DAO is a combination of rules and code. A set of rules attached to a control structure and embedded in code. This concept is implemented with smart contracts and provides a control mechanism.
To decide on any proposal, the community votes using native tokens.
Advantages of DAO?
No hierarchy
In DAO, every stakeholder can participate in voting and decision making.
Transparency
The history of decisions made is available to everyone.
Openness
Almost everyone, who has access to the Internet, can become a DAO token holder and thus gain the right to make decisions.
My opinion:
We have noticed that lately there is a strong trend with WEB3 and DAOs. There are many projects and Airdrops daily under this trend, that is good to some extent, but keep in mind that it increases the probability of fake Airdrops, SCAMS and Phishing.
If you are an OLD user, already experienced in cryptocurrencies, you know that when the trends move towards a specific concept and especially when it brings with it many Airdrops every day, where you also have to connect your wallet, that is really NOT good.
With this we are NOT saying that all DAO projects are SCAM, but simply understand what was said above, strong trends also bring with them many opportunists.
DON'T get emotional and do your own research (DYOR). Otherwise, hackers will definitely take negative advantage of this new DAO/WEB3 trend.
The concept of DAO allows people to interact with each other to achieve a common goal without having to trust.
