Concept of DAO

DAO-based Decentralized Digital Asset Management Protocol for Web 3.0

DAO (Decentralized Autonomous Organization) is an important concept that has emerged since the birth of Bitcoin. DAO is an organization built on smart contract that anyone can join and exit freely. Requirements for participation are coded on smart contract which is open and transparent. DAO does not require any intermediary. It is transparent, fair, arbitrary, anonymous, and operates autonomously. DAO works as an organizational structure, which has an enormous impact on how it raises and manages assets and funds. DAO with its unique governance system has a huge impact on the adoption of Web 3.0.

DAOs have evolved to fulfill the diverse needs of communities and enterprises. Investing through DAOs has become a way for users to invest in early-stage projects. The nature of a Ventures DAO bootstraps a loyal community as DAO members are incentivized to support portfolio projects. The top-down decision-making approach is used by conventional venture capital, where the decision-making process occurs at the highest level and is then communicated to the rest of the team. DAO on the other hand emphasizes the participation of the community and democratic solutions through on-chain governance.