{"id":9349,"date":"2022-03-25T15:44:00","date_gmt":"2022-03-25T12:44:00","guid":{"rendered":"https:\/\/alfacash.blog\/?p=9349"},"modified":"2024-02-19T21:50:50","modified_gmt":"2024-02-19T18:50:50","slug":"discover-financial-cooperation-future-daos","status":"publish","type":"post","link":"https:\/\/alfacash.blog\/cs\/2022\/03\/25\/discover-financial-cooperation-future-daos\/","title":{"rendered":"Discover the Financial cooperation of the future: The DAOs"},"content":{"rendered":"

DAOs are organizations that are becoming increasingly important and are essential for the future of the web3. In this article, we will tell you what DAOs are and how they can revolutionize cooperation systems around the world.<\/p>\n\n\n\n

DAOs: transparency, autonomy, and decentralization<\/h2>\n\n\n\n

Imagine a store that sells pet supplies. It belongs to people scattered around the world, unknown to each other, and not related under a hierarchical scheme.<\/p>\n\n\n\n

Its main objective is to generate profits and allocate part of them to help animals in need. How do they trust each other? How do they manage the funds and decide how to spend and invest them?<\/p>\n\n\n\n

\"daos-organizations-transparency\"
Imagen by Geralt \/ Pixabay<\/figcaption><\/figure>\n\n\n\n

DAO<\/a>s were created to automate these processes and expand the possibilities to organizations. DAO stands for Decentralizovan\u00e1 autonomn\u00ed organizace<\/em>. As its name implies, these organizations operate without any central authority<\/a><\/strong>. Thanks to chytr\u00e9 smlouvy<\/a>, they are organic, immutable, transparent, and bureaucratic-free.<\/p>\n\n\n\n

Its design ends the need for a trusted third party in transactions (such as banks or accounting entities). Let’s go back to our supplies store to exemplify what DAOs are.<\/p>\n\n\n\n

The store does not need any vendors to function. It can replenish its stock automatically, share profits among its members, and donate to charities<\/a> regularly. It is also capable of paying for services automatically.<\/p>\n\n\n\n

Additionally, its members have a voice and a vote as they invest in the store, so any change in its operation only can be done by its member’s approval. No single individual can affect the set of rules established by the DAO.<\/strong> The code, proposals, treasure, and votes can be audited at any given time. Due to everything is being registered on the blockchain<\/a>.<\/p>\n\n\n\n

How are the DAOs composed?<\/strong><\/h2>\n\n\n\n

A DAO has four elements that allow its operation: smart contracts, consensus protocol, tokens, and blockchain.<\/p>\n\n\n\n

Smart contracts<\/h3>\n\n\n\n

Smart contracts define the rules that allow automatically run operations. The contracts programming is what determines the functions of the DAO and complexity. Smart contracts operations are public and auditable.<\/p>\n\n\n\n

Consensus protocol<\/strong><\/h3>\n\n\n\n

The primary goal of DAOs is to achieve better coordination through collective ownership. <\/strong>The people that are organized in a DAO all share a common goal. The DAO maintains the efforts coordinated toward that goal, thanks to democratic decision-making.<\/p>\n\n\n\n

Therefore, DAOs need a consensus protocol to work. This protocol makes sure that any decision made by the DAO is the product of a vote. For example, no one could spend the treasury money without the group first approving the transaction.<\/p>\n\n\n\n

\"DAOs-consensus\"
Imagen by mohamed_hassan \/ Pixabay<\/figcaption><\/figure>\n\n\n\n

Exchange medium and governance token<\/strong><\/h3>\n\n\n\n

DAOs belong to the Decentralized Finance (DeFi) category, so they need to have means of exchange. To do this, some DAOs make use of their token, while others exchanges with existing tokens. This crypto allows DAO members to have the power to vote and also works as an economic reward.<\/p>\n\n\n\n

Let’s go back to December 2021 to see an example of how the governance token of a DAO works. A MakerDAO member, one of the biggest DAOs, accidentally called the burn function on the DAI.sol on Optimism, burning 10,000,000 DAI.<\/p>\n\n\n\n

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\u270d\ufe0f Story time.

It's December 2021. A mysterious anon sent 10 million Dai to the 0x00 address on @optimismPBC<\/a> by mistake. He was about to lose them forever.

Is there a solution for this catastrophe? Let's see \ud83d\udc47 pic.twitter.com\/Jv6EEJjisu<\/a><\/p>— MakerDAO Growth (@MakerGrowth) January 21, 2022<\/a><\/blockquote>