(still under construction)
What a DAO is
The obvious difference between a decentralized organization (DO) and a decentrazlied autonomous organization (DAO), and the one inherent in the language, is the word “autonomous”; that is, in a DO the humans are the ones making the decisions, and a DAO is something that, in some fashion, makes decisions for itself.
What DAO is and what DAO is not
In order to be a DAO, system:
- D - Should be politically AND architecturally decentralized;
- A - Should make ****some decisions automatically AND should ****not obey rules of the system located on the same or higher level;
- O - Should be comprised of multiple actors with clear governance rules, incentives and internal capital.
|Decentralized||Autonomous||Clear governance rules and incentives||Internal capital||DAO?|
|2-of-3 multisig wallet||+||+||+||+||Yes|
|Any Ethereum DApp or a smart contract||-||+||-||-||No|
DAO often consists of:
- Assets/property: internal currency, tokens, etc;
- Actors: curators, moderators, token holders, robots, smart contracts, etc;
- Rules of governance/protocol: permissions, business logic, etc.