Description: A Decentralized Autonomous Organization (DAO) is an entity that operates through rules encoded in computer programs, allowing it to function without the need for a central authority. These organizations are transparent and controlled by their members, who make decisions through a voting system based on blockchain technology. DAOs enable collaboration and resource management efficiently, eliminating intermediaries and promoting active participation from all involved. Their decentralized structure ensures that there is no single point of failure, increasing the resilience and security of the organization. Additionally, DAOs can be programmed to fulfill a variety of purposes, from fund management to the creation of service platforms, making them versatile tools in the digital ecosystem.
History: The concept of DAO gained popularity with the creation of ‘The DAO’ in 2016, an investment fund based on Ethereum that raised over 150 million dollars in Ether. However, it suffered a hack that resulted in the loss of a significant portion of the funds, leading to a fork of the Ethereum blockchain. Since then, interest in DAOs has grown, and various platforms and frameworks for their creation and management have been developed.
Uses: DAOs are primarily used in management of investment funds, governance of open-source projects, creation of decentralized service platforms, and organization of online communities. They are also being explored in areas such as electronic voting and management of digital assets.
Examples: Examples of DAOs include MakerDAO, which manages the DAI stablecoin, and MolochDAO, which funds development projects on Ethereum. Another example is Aragon, which provides tools to easily create and manage DAOs.
