<h2 id="header-0"><strong>What is a DAO?</strong></h2><p>A DAO, or Decentralized Autonomous Organization, is essentially a group managed by computer code, where participation is open to anyone who meets certain criteria. The “autonomous” aspect refers to the use of <a href="https://listing.help/what-are-smart-contracts-on-blockchain/" rel="noopener noreferrer nofollow">smart contracts</a> to automate most of the operations, reducing the need for human intervention. These organizations are built and operated by communities that collaboratively manage both funds and projects.</p><p>DAOs gained prominence with Ethereum’s 2016 venture capital fund known as “The DAO.” This project, however, faced a significant setback three weeks into its token sale when a vulnerability in the code led to an attack. Although the lost funds were recovered through a hard fork, the incident highlighted the early challenges of DAOs. Despite these hurdles, the concept has evolved and is now a common governance model, particularly in Decentralized Finance (DeFi).</p><p>While each DAO may function slightly differently, they generally adhere to similar principles. Typically, those who hold the DAO’s governance tokens have voting power proportional to their holdings. Token holders can also propose changes to how the DAO operates.</p>

How to Create a DAO

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Sergei Khitrov

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