Some people say that 2022 will be the first year of DAO

Everyone will start or join in. Here is what we need to know.

What is DAO?

DAO is short for Decentralized Autonomous Organization. It is the web3 structure of a business or organization.

Who can start a DAO?

Anyone can start a DAO. It does not have a top-down hierarchy. It is inclusive and open, and everyone can participate.

Some people say that 2022 will be the first year of DAO

How does it work?

The rules of DAO are all coded with smart contracts and open source. What the organization does is completely transparent. Decisions are made through grassroots voting by DAO members.

DAO’s project

In theory, any organization can be a DAO. Investment DAO and grant DAO can fund projects. Collector DAO can collect NFT digital art and other collectibles. Social DAO can provide a certain social circle for its members.

Some people say that 2022 will be the first year of DAO

How to form a DAO from scratch?

Core members with mission and vision. Attract the first dozens of early contributors. More people joined and spawned the first community-driven working group. The organization continued to grow, and specialized teams were created.

Some people say that 2022 will be the first year of DAO

What might DAO operations look like?

Some people say that 2022 will be the first year of DAO

DAO’s infrastructure

The DAO framework provides technical tools for creating DAO. A complete solution (such as Colony, Syndicate, or Aragon) can be used to create DAOs. Or pick individual solutions for each functional component and combine them.

Some people say that 2022 will be the first year of DAO

DAO infrastructure 2

  • The original team started with Discord
  • Distribute DAO specific tokens to members
  • Whether to use Paladin for governance
  • MultiSafe can manage funds from grants, token sales or membership dues
  • Members who work for the DAO get paid through Disperse


  • Non-cryptocurrencies and non-developers need easier access to DAO.
  • Can improve voting governance.
  • The measurement and compensation of member contributions needs to be improved.
  • The legal and regulatory status of the DAO is still unclear.

DAO tools

Some people say that 2022 will be the first year of DAO

Build and run DAO

First, quantitative tools have emerged that allow the community to visualize the risks in the DAO (and possible related agreements) as a function of market conditions, and allow DAO members to understand what it means to vote for lower guarantee/margin requirements or higher interest rates, such as . This provides greater transparency to the level of risk held by the DAO treasury and allows the community to update the treasury composition to meet specific KPIs.

For example, the billions of dollars in assets held by the loan agreement Aave and Compound effectively served as the insurance backing for the underlying loan agreement. For example, if large-scale price fluctuations occur, leading to a large number of loan defaults, causing losses to the lender in the agreement, these DAOs can use their treasury to make the lender complete (see, for example, the Compound DAI liquidation event).

Adjusting parameters in the agreement, such as collateral requirements, helps reduce the possibility that the DAO will have to spend funds on such support events. The following is an example of a real-time dashboard to monitor the risks of different Aave markets. Tools used to quantify risk include simulation tools that combine algorithmic trading and tools used in artificial intelligence (such as AlphaGo).

Some people say that 2022 will be the first year of DAO

Some people say that 2022 will be the first year of DAO

The goal of these tools and services is to allow the community to expand to a larger and more diverse population. Due to the composability of smart contracts, agreements become more and more complex and intertwined, and governance becomes more and more difficult for each new member. This in turn makes it harder for new members to join the DAO and participate in a meaningful way.

By helping users simply explain the complex behavior hidden in the DAO, visualization can help new members join. For example, tools can allow all members to understand what they are voting on, without the need to understand the underlying technical complexity. Then, each DAO tool or service can provide an explainable, easy-to-understand dashboard that reflects the DAO’s operating status from a technical, financial, and community perspective.

In DeFi, the main issues that DAO tends to deal with involve financial and technical risks, so its token holders use tools to assess these risks. They can also help proxy voters (for example, a voter who delegates their voting rights to another voter) to evaluate how well their proxy is doing to improve the performance of the protocol.

DAO is the future of work and community

Although it is still in its early stages, DAO will become a way for all of us to work, socialize and connect. It’s not too early to learn about them now.


Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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