DAO 101—All you need to know about DAOs

What are the 5 types of DAOs?There are different types of DAO. Here, we will look at the different categories that a decentralized autonomous organization can fall into, based on its mode of operation, structure, and even technology. Here is a few of them. You have probably heard some of these names:1. DeFi Protocol DAOThese DAOs use smart contract... See more

4. Collector DAOI wasn’t sure whether to categorize it under ‘Investment DAO’ or leave it as it is. We will call it a sub-category of investment DAOs. This organization focuses on the purchase of non-fungible tokens (NFTs) or other artworks and collectibles. The market for NFTs has exploded recently and it’s only right for people to explore it. An ... See more

“A” DAO? What’s that? Why is it better?DAO stands for a Decentralized Autonomous Organization. Some people like to also refer to it as Digital Autonomous Organization, but I prefer the former.They are virtual organizations. In the real world, you have organizations or companies right? And these companies have Shareholders and a Board of Directors. ... See more

3. Grant/Launchpad DAOIn a grant DAO, members of the community donate funds into the grant pool, and they vote on how to allocate and distribute the funds. These DAOs are in charge of funding new innovative DeFi projects. The organizations that need funding just need to submit applications. An excellent example of a Grant DAO is the Moloch DAO. The... See more

5. Social DAOThese are platforms for social interactions and social networking. Examples include Friends With Benefits, Ape DAO, and even Decentraland DAO.What are the Benefits of a DAO?Here are some of the benefits of a decentralized autonomous organization:They are trustless. You don’t need to trust a CEO or management teamIt can’t be shut down u... See more

What about the disadvantages of DAOs?We’ve been talking about how DAOs are the bomb and all of that? But are they really the shit? What could possibly go wrong with the DAO?DAOs could be vulnerable to bugs. Although rare, if they are hacked the consequences can be catastrophic.There are no business secrets. Since everything on the smart contract is... See more

2. Investment DAOHere, a group of people, let’s call them investors, pool their money together and make investment decisions. These decisions could include investing in start-ups or artworks. Investment DAOs support capital pooling for various DeFi operations. Examples of Investment DAOs include the Meta Cartel DAO, a community made up of people wh... See more