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Video: Cointelegraph’s Jackson DuMont, director of video production, explains what is a decentralized autonomous organization and how DAOs work.
He tackles the topic of the "next big thing:" the Metaverse. He explains the who, what, why behind the Metaverse and deep dives into how its blockchain technology has the potential to alter the online lives of internet users.
What makes this type of organization both decentralized and autonomous? The answer is smart contracts on the blockchain. Fundamentally, a DAO runs on the lines of computer code written on smart contracts that anyone can interact within the same way.
DuMont described the three major steps necessary to launch a DAO. The first step is creating that smart contract. The second step is to determine how to receive funding and enact governance, usually done by creating a token. Lastly, the DAO is deployed on the blockchain.
The most popular use case of a DAO is crowdfunding. The money pooled together is put into a smart contract that, in return, issues tokens to DAO members. Tokenholders, who own equity in the DAO, can then vote on how to spend the money and vote to appoint delegates. Read More
Source: Cointelegraph
Disclaimer: This article and video are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
