What is DAO?

DAO is the abbreviation of Decentralized Autonomous Organization. It is an organizational form derived from the core ideology of blockchain (co-creation, co-construction, co-governance, and shared collaborative behaviours spontaneously generated by groups that reach the same consensus). It is a subsidiary product after the blockchain solves the problem of trust between people. DAO is an evolution of the company's organizational form, a revolutionary evolution in the history of human collaboration. Its essence is a form of blockchain technology application.

DAO has the following characteristics:

  1. Distributed and decentralized. There is no central node and hierarchical management structure in DAO.

  2. Autonomous and automated. In an ideal DAO, management is coded, procedural and automated. "Code is law"

  3. Organized and ordered, relying on smart contracts, DAO's operating rules, participants' responsibilities and rights, and reward and punishment mechanisms are all open and transparent.

  4. Intelligence and tokenization. The bottom layer of DAO encapsulates all the infrastructure supporting DAO and its derivative applications-Internet basic protocols, blockchain technology, artificial intelligence, big data, Internet of Things, etc. Technical support, using digital, intelligent, and on-chain and off-chain collaborative governance as governance methods, changed the traditional bureaucratic and human management methods, and realized the intelligent management of the organization.

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