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What a DAO is

Johann Barbie,

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

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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?
McDonald's - + + + No
TheDAO + + + + Yes
2-of-3 multisig wallet + + + + Yes
Bitcoin, BTC
+ + + + Yes
Any Ethereum DApp or a smart contract - + - - No
TokenCuratedRegistry (system) + + + + Yes



+ + - - No
## **Resume**

DAO often consists of:

  1. Assets/property: internal currency, tokens, etc;
  2. Actors: curators, moderators, token holders, robots, smart contracts, etc;
  3. Rules of governance/protocol: permissions, business logic, etc.
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