DAOs: web3-native organizations collectively owned and managed by their members.

DAOs are the core unit behind a lot of web3 projects, sharing their mission with the public and allowing anyone to jump in and participate. But to understand them, we should first go over the three core characteristics of a DAO:

Decentralized: They have no clear hierarchy, anyone can obtain a leadership position by participating actively and sharing interesting proposals.

Autonomous: They rely on code and automation to execute their core mission. Minimizing human bias as much as possible.

Organizations: They execute on a clear mission, every DAO has a single need they aim to solve. The simpler, the better (e.g. We want to buy an NBA team, We want to reduce carbon emissions on the Ethereum Blockchain).

Sure, this is the ideal version of a DAO; but in practice, there’s really a lot more nuance to what they actually look like in web3. Having such a complex system of contributors lends itself to DAOs mixing and matching their own formula for these three components. Some of them have a core team leading the way; while others don’t rely as much on automation, opting for a more human-centric approach instead.

Some people prefer to call them “Tokenized Communities”, mostly because the term DAO can feel a bit misleading given how much grey area there is in between. But overall, the best way to describe DAOs as we know them currently is as a groupchat with a joint wallet, working towards a goal.

https://www.tiktok.com/@rabbithole_gg/video/7117933389507775790

How are DAOs Different to Traditional orgs

There are books being written as we speak on the differences between DAOs and the companies you're used to. For the sake of brevity, and keeping in line with this article's topic, the main four you should be aware of are their Ease of Access, Hands-off Approach, Flexibility and Fluidity.

• Lower Barrier for Entry: Sometimes it’s as easy as jumping into a Discord server and offering to help. Working for DAOs allows you to bring in as much work as you want while being able to voice your thoughts and shape the direction the community is taking.
• Hands-off Approach: Continuing with this thread, one of the biggest advantages of working for a DAO is that you’re being measured by your results. As long as the work you’re providing adds to the org’s mission, you won’t have to deal with cumbersome quotas or schedules for the most part (Discord calls not included).
• Flexibility of Output: Unless you’re being hired for a specific and ongoing role, most DAOs assume you’ll be contributing with several projects at the same time. What you should do in this aspect is to gather some experience with several of your favorite ones until you find one you're happy giving your full attention to.
• Role Fluidity: A lot of DAOs do away with hierarchical roles in the organization. You can very easily be a creative lead by day, and a governance expert by night. You can provide value where value is needed to your heart’s content.

Wanna Learn More About This Topic?

Wanna jump straight to the fun part? In our next lesson you’ll be interacting with the Ethereum chain for the first time by sharing a little “hello world” piece with the community. Hop in here to see the lesson in advance.

• “A DAO Defined: The Big Picture” -Aragon
• “What is a DAO?” -Whiteboard Crypto