What was the Dao and how did it work?

The DAO was an organization that was designed to be automated and decentralized. It acted as a form of venture capital fund, based on open-source code and without a typical management structure or board of directors. In order to be fully decentralized, the DAO was unaffiliated with any particular nation state,...

What is the backbone of a dao?

The backbone of a DAO is its smart contract. The contract defines the rules of the organisation and holds the group's treasury. Once the contract is live on Ethereum, no one can change the rules except by a vote. If anyone tries to do something that's not covered by the rules and logic in the code, it will fail.

How does a blockchain Dao get funded?

Once these rules are formally written onto the blockchain, the next step is around funding: the DAO needs to figure out how to receive funding and how to bestow governance. This is typically achieved through token issuance, by which the protocol sells tokens to raise funds and fill the DAO treasury.

Are Daos legal entities?

While DAOs are very similar to regular organizations, only a few places around the world recognize them as legal entities that benefit from the protections usually afforded to traditional organizations like LLCs. One of these places is the US state of Wyoming, which passed legislation in April that allows DAOs to register as LLCs.