Decentralized Autonomous Organization (DAOs) and Continuous Organizations (COs)
Decentralized Organizations and Continuous Organizations are two types of decentralized blockchain solutions for the governance of organizations. Some of the main use cases for DAOs and COs are investment funds (for profit or not for profit), digital cooperatives, and Web3 communities.
What are DAOs and COs?
To achieve their goals, both of these solutions are run by smart contracts and complex crypto-economic principles.
DAOs’ main purpose is to automate and decentralize the governance of organizations, such as corporations. The structure of DAOs is flat and depends on the operation of smart contracts to enforce rules and decisions within the organization.
Tokens are used within the DAO to provide voting and decision-making power to participants, with greater power being given to those with more tokens.
COs, on the other hand, are aimed at creating a sustainable financing model for traditional organizational structures. Just like a legacy organization, a CO has a management structure to ensure its functioning.
Along with that, COs have a Decentralized Autonomous Trust (DAT). The DAT is a type of immutable smart-contract based on a bonding curve contract – a complex mathematical model.
Its purpose is to discourage speculation, and create incentives for long-term stakeholder participation. It functions by minting, distributing, and burning the COs security tokens in accordance with the bonding curve model.
New to decentralized organizations and COs? Read our great
DAO (Decentralized Autonomous Organization) vs Continuous Organizations 101 guide to get a full picture of the differences between these two blockchain solutions.
Are you considering developing a DAO or CO solution? Here are some of the benefits that you could reap!
Benefits of Building Decentralized Organizations
Compared to legacy organizations, decentralized organizations offer several distinct advantages. DAOs are:
Benefits of building COs
Continous organizations have a slightly different purpose than DAOs, even though they share many of their benefits. COs offer the following benefits to businesses:
How are DAOs and COs Developed?
The development of DAOs and COs goes through several stages to ensure it complies with the project’s requirements. These stages include:
An initial analysis of the use case and the desired underlying token model is conducted to understand the idea behind the project and its aim. This lays the foundation for the subsequent development of the smart contracts that will power the DAO or CO.
Smart contract development
After the analysis and planning, work on smart contracts can begin. Contracts are developed according to project requirements to implement the rules that will govern the organization and transactions. In the case of a CO, this also includes elaborate work on the DAT and bonding-curve.
Smart contract unit testing
Given the complexity of smart contracts in DAOs and COs, extensive testing must be conducted before they are rolled out. This ensures that potential bugs and errors are caught at this stage and do not create complications down the line.
Front-end application development
Finally, the application’s frontend is developed to allow its use and launch. After the final tests are conducted, the DAO or CO is good to go!
Decentralized Organizations and Continuous Organizations by LimeChain
LimeChain has been developing dApps and smart contracts with significant funds in them since 2017. Over this period, we have developed over 100 blockchain projects and have acquired deep experience in DAOs and COs, both as a member and a builder.
We pride ourselves on being one of the first companies to bring a bonding curve-enabled continuous organization to market. We offer DAO and CO development, as well as DAO infrastructure development and tooling development.