DAOs: A Community Built on Code

Time Stamp: February 10, 2022 9:30 AM
Source Node: 1606341

The past few years have seen crypto impact just about every industry in one way or another, but one innovation in particular is using blockchain technology to fundamentally disrupt how organizations are structured, codified and governed.

In Kraken Intelligence’s latest deep dive, the team takes a closer look at the unique history of Decentralized Autonomous Organizations (DAOs) and how they’re poised to drive innovation in a number of industries.

What is a DAO?

A DAO is an Internet-native entity that is fully owned and managed by its members. DAOs have their own treasuries that are often secured by a distributed multi-signature wallet. ‘Multi-sig’ wallets split the ownership of a treasury’s private key between multiple parties to prevent unauthorized use of funds and ensure access to funds is granted through collaboration and consensus. A DAO’s assets may be accumulated from a variety of contribution sources and members vote on how to best utilize these funds to accomplish the organization’s mission.

What makes DAOs unique?

Unlike traditional organizations, DAOs create low-barrier opportunities for individuals around the globe to coordinate assets and ideas, to accomplish a mission with minimal startup costs. DAOs’ transparent and trustless activity records foster and support an highly collaborative organizational culture. DAOs are revolutionizing traditional organizations and driving Web3 expansion on an exponential scale. DAOs can mobilize members to accomplish anything that they put their minds to, including the steering of a $20B decentralized finance (DeFi) protocol like Curve Finance, purchasing plots of land through CityDAO, or funding large-scale development of projects for the broader Web 3 community through Gitcoin. 

In this report, the Kraken Intelligence team explores why DAOs exist, how they’re structured, and which DAOs are currently making waves.

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