<p><span style="font-size: 11pt; color: #000000;">The world is moving towards a more democratic online presence; hence, <span style="color: #e67e23;"><a style="color: #e67e23;" title="DAO development services" href="../../blockchain-services">DAO development services</a></span> have become prevalent today. However, it is still a new concept used in some projects, and we are still waiting to see its full potential.&nbsp;&nbsp;</span></p>
<p><strong><span style="font-size: 11pt; color: #000000;">Imagine an online world that lets you&nbsp; </span>&nbsp;</strong></p>
<ul>
<li><span style="font-size: 11pt; color: #000000;">organize with other people, who you do not know,&nbsp; &nbsp;</span></li>
<li><span style="font-size: 11pt; color: #000000;">establish specific rules, and&nbsp; &nbsp;</span></li>
<li><span style="font-size: 11pt; color: #000000;">make decisions autonomously through Blockchain.&nbsp;&nbsp;</span></li>
</ul>
<p><span style="font-size: 11pt; color: #000000;">DAO is a community entity with complete decentralization authority. It is a decentralized organization management system based on the use of smart contracts.&nbsp;&nbsp;</span></p>
<p>&nbsp;</p>
<h2>Understanding Decentralized Autonomous Organizations&nbsp;&nbsp;</h2>
<p><span style="color: #000000; font-size: 11pt;">The digital currencies experiencing fame and fortune today are decentralized. Meaning no single institution has rights to it. The government, central bank, or other giant corporations do not get a say in how they operate.&nbsp; &nbsp;</span></p>
<p><span style="color: #000000; font-size: 11pt;">DAO is governed entirely by its members, who collectively make major decisions about the future of the project, such as technical upgrades and treasury allocations.&nbsp;&nbsp;</span></p>
<p><span style="color: #000000; font-size: 11pt;">The decentralized status of these entities allows for better security and privacy of users that are not available under the standard currencies and their transactions. Here, DAO <span style="color: #e67e23;"><a style="color: #e67e23;" title="Blockchain development services" href="../../blockchain-services">Blockchain development services</a></span> help provide a system for transaction.&nbsp;</span></p>
<p>&nbsp;</p>
<h2>DAO Development Services &ndash; Key Features of DAO&nbsp;&nbsp;</h2>
<p><span style="font-size: 11pt; color: #000000;">As the name suggests, DAOs have three core features:&nbsp;&nbsp;</span></p>
<p><span style="font-size: 11pt; color: #000000;"><strong>Decentralization:</strong> Not governed by one single, centralized entity.&nbsp;&nbsp;</span></p>
<p><span style="font-size: 11pt; color: #000000;"><strong>Autonomous: </strong>The DAO can automatically execute operations on its own without any intervention.&nbsp;&nbsp;</span></p>
<p><span style="font-size: 11pt; color: #000000;"><strong>Organization: </strong>The DAO is governed by its own predetermined rules, like an organization.&nbsp;</span></p>
<p>&nbsp;</p>
<p><span style="font-size: 11pt; color: #000000;"><img style="display: block; margin-left: auto; margin-right: auto;" src="https://mooglelabs165918662.files.wordpress.com/2022/11/dao-development-services-e28093-key-features-of-dao.jpg" alt="DAO Development Services &ndash; Key Features of DAO  " width="852" height="480" /></span></p>
<h2>&nbsp;</h2>
<h2><span style="font-size: 18pt;">Why Do We Need DAOs?&nbsp;&nbsp;</span></h2>
<p><span style="color: #000000;"><span style="font-size: 14.6667px;">To begin an organization with other people and finances requires trust among the team. However, it is challenging to trust people you have found online. DAO takes the issue out of the situation as the members only need to trust the DAO code that is 100% transparent and verifiable.&nbsp;</span></span></p>
<p><span style="color: #000000;"><span style="font-size: 14.6667px;">A company can change the rules in an instant. Their terms of use and policies vary to meet the business demands. In the current times, Twitter is an excellent example. They have a set new rule with a change of management that has sparked debates.&nbsp; &nbsp;</span></span></p>
<p><span style="color: #000000;"><span style="font-size: 14.6667px;">The presence of a decentralized autonomous authority will add more clarity, and changes like this will become challenging. The current online ecosystem has big names helping your brand.&nbsp; &nbsp;</span></span></p>
<p><span style="font-size: 14.6667px; color: #000000;">DAO Blockchain Development to create democratic platforms makes the new technology worth more.&nbsp;&nbsp;</span></p>
<p>&nbsp;</p>
<h2><span style="font-size: 14.6667px;"><span style="font-size: 18pt;">DAO Development Services &ndash; How do DAO functions work?&nbsp;</span>&nbsp;</span></h2>
<p><span style="color: #000000;"><span style="font-size: 14.6667px;">DAO functions on a set of rules that sets it apart from the traditional organizations that exist today. Here is how DAO functions:&nbsp;</span></span></p>
<ul>
<li><span style="color: #000000;"><span style="font-size: 14.6667px;">The core team of the community establishes the Rules of DAO with the use of the DAO Development services and smart contract. These rules are very transparent, visible, and understandable to the protentional member of the community so they can easily understand the protocol function for each step.&nbsp; &nbsp;</span></span></li>
<li><span style="color: #000000;"><span style="font-size: 14.6667px;">After the rules are defined, the further step is to look for funding. DAO needs to find out how to receive financing. This is achieved by protocol rules to sell tokens to get funding and get the DAO treasury to fill up.&nbsp;</span></span></li>
<li><span style="color: #000000;"><span style="font-size: 14.6667px;">In exchange for their investment, token holders get voting rights that are proportional to their investment. Once the finances are in order, DAO is ready for deployment.&nbsp;</span></span></li>
<li><span style="font-size: 14.6667px; color: #000000;">Once the code goes into production, the only way to change the rules is to reach a consensus through voting. It means that no special authority has the right to change the practices in DAO unilaterally. Instead, all the token holders are responsible for the decision.&nbsp;</span></li>
</ul>
<p>&nbsp;</p>
<p><span style="font-size: 14.6667px; color: #000000;"><img style="display: block; margin-left: auto; margin-right: auto;" src="https://mooglelabs165918662.files.wordpress.com/2022/11/how-does-dao-work.png" alt="How Does DAO Work" width="800" height="800" /></span></p>
<p>&nbsp;</p>
<h2><span style="color: #000000;"><span style="font-size: 18pt;">Examples of Decentralized Autonomous Organizations (DAOs)&nbsp;&nbsp;</span></span></h2>
<p><span style="color: #000000;"><span style="font-size: 14.6667px;">Currently, there are several Decentralized Autonomous Organizations. Here are some of the most prominent examples of the companies:&nbsp;</span></span></p>
<ul>
<li><span style="color: #000000;"><span style="font-size: 14.6667px;"><strong><span style="color: #e67e23;">&nbsp;<a style="color: #e67e23;" title="Uniswap" href="https://uniswap.org/" target="_blank" rel="nofollow,noopener">Uniswap</a> </span>&ndash;</strong> One of the biggest popular DAOs operates as a cryptocurrency exchange built on the Ethereum blockchain.&nbsp;&nbsp;</span><span style="font-size: 14.6667px;"><br /></span></span></li>
<li><span style="color: #000000;"><span style="font-size: 14.6667px;"><strong><span style="color: #e67e23;"><a style="color: #e67e23;" title="American CryptoFed DAO" href="https://www.americancryptofed.org/" target="_blank" rel="nofollow,noopener">American CryptoFed DAO</a></span> - </strong>It positions itself as a kind of crypto-equivalent to the US Federal Reserve and aims to enable fee-free trading using its token, known as the Ducat.&nbsp;&nbsp;</span><span style="font-size: 14.6667px;"><br /></span></span></li>
<li><span style="color: #000000;"><span style="font-size: 14.6667px;"><strong><span style="color: #e67e23;"><a style="color: #e67e23;" title="BitDAO" href="https://www.bitdao.io/" target="_blank" rel="nofollow,noopener">BitDAO</a></span> &ndash;</strong> its decentralized investment fund backed by PayPal founder Peter Thiel, created to allow anyone to buy a stake in web3 and de-fi startups and initiatives.&nbsp;&nbsp;</span><span style="font-size: 14.6667px;"><br /></span></span></li>
<li><span style="color: #000000;"><span style="font-size: 14.6667px;"><strong><span style="color: #e67e23;"><a style="color: #e67e23;" title="LexDAO" href="https://www.lexdao.coop/" target="_blank" rel="nofollow,noopener">LexDAO</a></span> - </strong>This DAO aims to create smart contracts capable of carrying out legal services.&nbsp;&nbsp;</span><span style="font-size: 14.6667px;"><br /></span></span></li>
</ul>
<p>&nbsp;</p>
<h2><span style="color: #000000;"><span style="font-size: 18pt;">Benefits of Decentralized Autonomous Organizations&nbsp;&nbsp;</span></span></h2>
<p>&nbsp;</p>
<p><span style="color: #000000;"><span style="font-size: 18pt;"><img style="display: block; margin-left: auto; margin-right: auto;" src="https://mooglelabs165918662.files.wordpress.com/2022/11/benifits-and-limitations-of-dao.png" alt="Benefits of DAO" width="700" height="525" /></span></span></p>
<p>&nbsp;</p>
<p><span style="color: #000000;"><span style="font-size: 14.6667px;">A collective group or individuals would want to pursue a DAO structure for various reasons. And some of the advantages of the structure include the following:&nbsp;&nbsp;</span></span></p>
<h3><strong><span style="color: #000000;"><span style="font-size: 14.6667px;">Decentralization&nbsp;&nbsp;</span></span></strong></h3>
<p><span style="color: #000000;"><span style="font-size: 14.6667px;">The decisions that affect an organization are approved by a collection of individuals, not a central authority. It takes away the power from a small group and gives it to the people at large.&nbsp;&nbsp;</span></span></p>
<h3><strong><span style="color: #000000;"><span style="font-size: 14.6667px;">Publicity&nbsp;&nbsp;</span></span></strong></h3>
<p><span style="color: #000000;"><span style="font-size: 14.6667px;">DAO allows voting on decisions and makes them publicly viewable. The system incentivizes positive actions and discourages negative ones.&nbsp; &nbsp;</span></span></p>
<h3><strong><span style="color: #000000;"><span style="font-size: 14.6667px;">Participation&nbsp;&nbsp;</span></span></strong></h3>
<p><span style="color: #000000;"><span style="font-size: 14.6667px;">This management system gives users higher stakes in the company. It empowers the users and helps them feel connected with the community.&nbsp; &nbsp;</span></span></p>
<h3><strong><span style="color: #000000;"><span style="font-size: 14.6667px;">Community&nbsp;</span></span></strong></h3>
<p><span style="font-size: 14.6667px; color: #000000;">DAO, as a concept, revolves around helping people come together and build something using an internet connection. It creates a strong community where token holders have voting rights that affect the changes in organizations' operations.&nbsp;</span></p>
<p>&nbsp;</p>
<h2><span style="color: #000000;"><span style="font-size: 18pt;">Limitations of DAOs&nbsp;&nbsp;</span></span></h2>
<p>&nbsp;</p>
<p><span style="color: #000000;"><span style="font-size: 18pt;"><img style="display: block; margin-left: auto; margin-right: auto;" src="https://mooglelabs165918662.files.wordpress.com/2022/11/benifits-and-limitations-of-dao-1.png" alt="Limitations of DAOs  " width="700" height="525" /></span></span></p>
<p><span style="color: #000000;"><span style="font-size: 14.6667px;">However, DAO is not without its own set of drawbacks. Here are some common disadvantages of a DAO organization.&nbsp;</span></span></p>
<h3><strong><span style="color: #000000;"><span style="font-size: 14.6667px;">Speed&nbsp;</span></span></strong></h3>
<p><span style="color: #000000;"><span style="font-size: 14.6667px;">While the voting system does positively impact an organization's operations in good times, in the case of contingency scenarios, the same feature can turn into a major setback. It hampers the speed of decision-making, which can turn fatal for an organization.&nbsp;</span></span></p>
<h3><strong><span style="color: #000000;"><span style="font-size: 14.6667px;">Education&nbsp;&nbsp;</span></span></strong></h3>
<p><span style="color: #000000;"><span style="font-size: 14.6667px;">It will take longer to educate users from diverse backgrounds and levels of academic education.&nbsp;&nbsp;</span></span></p>
<h3><strong><span style="color: #000000;"><span style="font-size: 14.6667px;">Inefficiency</span></span></strong></h3>
<p><span style="color: #000000;"><span style="font-size: 14.6667px;">It takes significantly more time to accumulate all the users with voting rights due to the decentralized nature of the organization.&nbsp;</span></span></p>
<h3><strong><span style="color: #000000;"><span style="font-size: 14.6667px;">Security&nbsp;</span></span></strong></h3>
<p><span style="font-size: 14.6667px; color: #000000;">The company also needs to maintain the highest security standards on DAO treasure, as theft and misuse of funds are possible in such an organization.&nbsp;</span></p>
<p><span style="font-size: 14.6667px; color: #000000;">&nbsp;</span></p>
<h2><span style="color: #000000;"><span style="font-size: 18pt;">DAO vs Traditional Organization&nbsp;</span></span></h2>
<p><span style="font-size: 14.6667px; color: #000000;">Decentralized Autonomous Organizations are widely different from the Traditional companies that operate today. Here is a chart that discusses the difference between the two types of companies.&nbsp;</span></p>
<p>&nbsp;</p>
<table style="border-collapse: collapse; width: 97.0528%; height: 220px; background-color: #ced4d9; border-color: #000000; border-style: solid;" border="1">
<tbody>
<tr style="height: 22px; border: 2px solid;">
<td style="width: 22.0402%; text-align: center; height: 22px; border: 2px solid;"><strong>Feature&nbsp;</strong></td>
<td style="width: 33.3206%; text-align: center; height: 22px; border: 2px solid;"><strong>DAO Organization&nbsp;</strong></td>
<td style="width: 40.336%; text-align: center; height: 22px; border: 2px solid;"><strong>Traditional Organizations&nbsp;</strong></td>
</tr>
<tr style="height: 22px; border: 2px solid;">
<td style="width: 22.0402%; text-align: left; height: 22px; border: 2px solid;">Organizational Structure&nbsp;</td>
<td style="width: 33.3206%; text-align: left; height: 22px; border: 2px solid;">Flat and Democratic Management&nbsp;</td>
<td style="width: 40.336%; text-align: left; height: 22px; border: 2px solid;">Hierarchical Management&nbsp;</td>
</tr>
<tr style="height: 22px; border: 2px solid;">
<td style="width: 22.0402%; text-align: left; height: 22px; border: 2px solid;">Voting&nbsp;</td>
<td style="width: 33.3206%; text-align: left; height: 22px; border: 2px solid;">A Mandate for changes in Protocol&nbsp;</td>
<td style="width: 40.336%; text-align: left; height: 22px; border: 2px solid;">A Sole Party makes changes, as per the structure&nbsp;</td>
</tr>
<tr style="height: 44px; border: 2px solid;">
<td style="width: 22.0402%; text-align: left; height: 44px; border: 2px solid;">Governance&nbsp;</td>
<td style="width: 33.3206%; text-align: left; height: 44px; border: 2px solid;">Based on Community&nbsp;</td>
<td style="width: 40.336%; text-align: left; height: 44px; border: 2px solid;">Based on investors, board of directors, executives, and activists.</td>
</tr>
<tr style="height: 22px; border: 2px solid;">
<td style="width: 22.0402%; text-align: left; height: 22px; border: 2px solid;">Transparency&nbsp;</td>
<td style="width: 33.3206%; text-align: left; height: 22px; border: 2px solid;">Fully Public and transparent&nbsp;</td>
<td style="width: 40.336%; text-align: left; height: 22px; border: 2px solid;">Private with limited public involvement&nbsp;</td>
</tr>
<tr style="height: 22px; border: 2px solid;">
<td style="width: 22.0402%; text-align: left; height: 22px; border: 2px solid;">Handling of Services&nbsp;</td>
<td style="width: 33.3206%; text-align: left; height: 22px; border: 2px solid;">Automated&nbsp;</td>
<td style="width: 40.336%; text-align: left; height: 22px; border: 2px solid;">Requires humans labor&nbsp;</td>
</tr>
<tr style="height: 44px; border: 2px solid;">
<td style="width: 22.0402%; text-align: left; height: 44px; border: 2px solid;">Funding&nbsp;</td>
<td style="width: 33.3206%; text-align: left; height: 44px; border: 2px solid;">Financial contributions align with governance rights,making the investors,both workers and owners</td>
<td style="width: 40.336%; text-align: left; height: 44px; border: 2px solid;">Initial funding through partners and members&nbsp;</td>
</tr>
<tr style="height: 22px; border: 2px solid;">
<td style="width: 22.0402%; text-align: left; height: 22px; border: 2px solid;">Legal Definition&nbsp;</td>
<td style="width: 33.3206%; text-align: left; height: 22px; border: 2px solid;">&lsquo;Generic Partnerships&rsquo;&nbsp;</td>
<td style="width: 40.336%; text-align: left; height: 22px; border: 2px solid;">Centralized legal entity&nbsp;</td>
</tr>
</tbody>
</table>
<h2>&nbsp;</h2>
<h2>The new properties of organizations built as a DAO&nbsp;</h2>
<p><span style="font-size: 11pt; color: #000000;">Here are the key characteristics of DAO:&nbsp;</span></p>
<ul>
<li><span style="font-size: 11pt; color: #000000;">A core group makes the concept.&nbsp;</span></li>
<li><span style="font-size: 11pt; color: #000000;">Completely visible framework.&nbsp;</span></li>
<li><span style="font-size: 11pt; color: #000000;">One person does not lead, and verification can be done at multiple points.&nbsp;&nbsp;</span></li>
<li><span style="font-size: 11pt; color: #000000;">Every DAO member has access to the firm's financial details, making the company publicly auditable.&nbsp;&nbsp;</span></li>
<li><span style="font-size: 11pt; color: #000000;">To make changes to the code or protocol, voting in a transparent manner is mandatory.&nbsp;</span></li>
<li><span style="font-size: 11pt; color: #000000;">It is possible to add DeFi, <span style="color: #e67e23;"><a style="color: #e67e23;" title="NFT" href="../../nft-development-services">NFT</a></span>, and utilitarian use cases into the system.&nbsp;</span></li>
</ul>
<p>&nbsp;</p>
<h2>Conclusion: Get DAO Development Services To Create Your Organization!&nbsp;</h2>
<p><span style="font-size: 11pt; color: #000000;">Decentralized Autonomous organizations are the future-ready business models you can invest in today. With its share of benefits and drawbacks, DAO is fast becoming the preferred business model, and many companies and entrepreneurs are already investing in the technology. Get your DAO Development services to create a company that resonates with the masses, gives them a voice, and adds to their experience.&nbsp;</span></p>
<p><span style="font-size: 11pt; color: #000000;">Get in touch with <span style="color: #e67e23;"><a style="color: #e67e23;" title="MoogleLabs" href="../../">MoogleLabs</a></span> to discuss the details of your project, and we will provide end-to-end solutions for your company's needs.&nbsp;</span></p>
<p>&nbsp;</p>
<p><a title="DAO Development Services - Contact Us" href="../../contact-us" target="_blank" rel="noopener"><img style="display: block; margin-left: auto; margin-right: auto;" src="https://mooglelabs165918662.files.wordpress.com/2022/11/ai-600-c397-90-px-700-c397-105-px-2.png" alt="DAO Development Services - Contact Us" width="700" height="105" /></a></p>
<h2>&nbsp;</h2>
<h2>FAQ</h2>
<h3><span style="font-size: 11pt; color: #000000;"><strong>What is a DAO?&nbsp;</strong> &nbsp;</span></h3>
<p><span style="font-size: 11pt; color: #000000;">DAO stands for Decentralized Autonomous Organization, which relies on smart contracts and code governance for operations. It is a community-led company that is driven to help a community through a brand-new system or operations.&nbsp; &nbsp;</span></p>
<h3><span style="font-size: 11pt; color: #000000;"><strong>How much does it cost to start a DAO?&nbsp; </strong>&nbsp;</span></h3>
<p><span style="font-size: 11pt; color: #000000;">The initial filing fee to register DAO as an LLC is $100. However, depending on your expertise in the area, it can take more money to set up a DAO, especially if you need developers for the job. In such cases, you can get more people to invest in the idea first and then start the development process.&nbsp;&nbsp;</span></p>
<h3><strong><span style="font-size: 11pt; color: #000000;">What are some examples of DAOs?&nbsp; &nbsp;</span></strong></h3>
<p><span style="font-size: 11pt; color: #000000;">DAO organizations are becoming more prevalent in today&rsquo;s time. Some well-known examples of DAO include Uniswap, American CryptoFed DAO, BitDAO, and LexDAO.&nbsp;&nbsp;</span></p>
<h3><strong><span style="font-size: 11pt; color: #000000;">What is a DAO in NFT?&nbsp; &nbsp;</span></strong></h3>
<p><span style="font-size: 11pt; color: #000000;">DAO in the Blockchain world stands for Decentralized Autonomous Organizations. It is a new type of organization that relies on Blockchain for funding and running.&nbsp; &nbsp;</span></p>
<h3><strong><span style="font-size: 11pt; color: #000000;">Is Ethereum a DAO?&nbsp; &nbsp;</span></strong></h3>
<p><span style="font-size: 11pt; color: #000000;">Ethereum is the perfect foundation for DAO, and as an organization, it does have several features of a Decentralized Autonomous Organization, but it is not one. In the case of DAO, there is an on-chain governance, but Ethereum has an off-chain administration.&nbsp; &nbsp;</span></p>
<p>&nbsp;</p>
<p>&nbsp;&nbsp;</p>