Summary of What are DAOs?

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What are DAOs? summary

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Cryptocurrencies, nonfungible tokens and now, decentralized autonomous organizations (DAOs): Some experts believe this recent innovation may prove to be yet another transformational force in finance and commerce. DAOs offer a distributed set-up – in contrast to the hierarchical framework of a traditional legal corporate entity – in which individuals and groups can engage in shared decision making. Journalist Taylor Locke explores the emerging phenomenon and explains the specifics of operating models, utilization and future trends. Investors interested in learning more about DAOs will find this a helpful introduction.

About the Author

Taylor Locke is a financial reporter for CNBC.

Summary

A decentralized autonomous organization (DAO) is a new structure based on blockchain.

The decentralized autonomous organization (DAO) “is an internet community with a shared bank account.” A DAO can have any mission, goals, rules or by-laws.

A DAO’s members communicate and make decisions collectively by using distributed ledger technology and recording agreements in immutable smart contracts. Cryptocurrency wallets collect tokens from members to build a common reservoir of capital deployed for specific assets. One prominent example is PleasrDAO: In 2021, it purchased the lone copy of the Wu-Tang Clan...


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