Decentralized Organizations and DAOs
Decentralized organizations (DOs) and decentralized autonomous organizations (DAOs) are smart-contract powered organizations and their main use cases are to create investment funds (for profit or not for profit), digital cooperatives and Web3 communities. Smart contracts enable enforcement of rules and decisions, while token-holders are the ultimate decision-makers, with their voting power proportional to the number of tokens they have. In contrast to a traditional company/organization, decentralized autonomous organizations are flat organizations with little to no management structure in place. Essentially, it’s an attempt to create a digital democracy within an organization.
Benefits of DOs and DAOs
Compared to legacy organizations, DAO’s distinct advantages are:
2. No (or little) management structure in place
3. Achieving a digital democracy
4. Great for uniting communities
DAOs could also be revenue-generating and achieve continuous funding through special smart contracts. For more info on Continuous Organizations, check out this article and our use case with Mogul Studios.
At LimeChain, we’ve been in the epicenter of DAOs and DOs as members of the Meta Cartel DAO and the main blockchain development partner behind Mogul Studios – a decentralized organization democratizing the movie industry.
Already familiar with DAOs and need technical expertise? Get in touch with us at [email protected] and Just DAO It! Being knees deep in the Ethereum community, we can help you with the development or auditing of the smart contracts for your DAO or DO.