What is a dao and how does it work?

One of the first DAOs named The DAO was an organization created by developers to automate decisions and facilitate cryptocurrency transactions. A DAO must ensure security is prioritized, as exploits can leave a DAO drained of millions of dollars of its treasury savings. One of the major features of digital currencies is that they are decentralized.

What is the Dao crowdfunding campaign?

The DAO launched in late April 2016 thanks to a month-long crowd sale of tokens that raised more than $150 million in funds. 3 At the time, the launch was the largest crowdfunding fundraising campaign of all time.

What are the challenges of daos?

A common challenge of DAOs is that while they bring a diverse set of people together, that diverse set of people must learn how to grow, strategize, and communicate as a single unit. Inefficiency. Partially summarizing the first two bullets, DAOs run a major risk of being inefficient.

What is a decentralized autonomous organization (DAO)?

A decentralized autonomous organization (DAO) is an emerging form of legal structure that has no central governing body and whose members share a common goal to act in the best interest of the entity. Popularized through cryptocurrency enthusiasts and blockchain technology, DAOs are used to make decisions in a bottom-up management approach.