Deciphering DAOs | Benefits, Elements, and a Pre-Built Solution

Posted by MuBlockchain on December 6th, 2022

What is a DAO? A Brief Explanation

A decentralized autonomous organization is a blockchain-powered solution that enables a business to function without any centralized authority or intermediaries. It distributes control among all stakeholders. They can use governance tokens associated with a DAO to vote on various rules or changes across processes. Their voting power is generally equivalent to the tokens they possess.

DAO Benefits for an Individual and an Organization

Chief Components Of Decentralized Autonomous Network

How Does a DAO Work?

  • A core team of community members establishes the DAO rules through the use of smart contracts.
  • Smart contracts work as a foundational framework on which the DAO will eventually operate and are thus visible, verifiable, and auditable by all members.
  • The DAO platform issues tokens to decide on different ways to receive funding and bestow governance.
  • This protocol allows the DAO to sell tokens for raising money and filling the treasury.
  • Token holders are issued voting rights in return for their fiat and this is proportional to their holdings.
  • The DAO is ready to be deployed once the funding completes. The code is pushed to production and cannot be modified without a consensus concluded via member voting.

Pre-Built DAO Solution Development by Oodles

Keeping in mind the emergence of DAO, the team of blockchain developers at Oodles has developed a DAO solution/governance token. Precisely, they have prepared a basic architecture of DAO governance token. With this development model, there’s no need to develop a DAO from scratch. Blockchain enthusiasts planning to launch a DAO can significantly reduce their time to market with pre-built DAO solutions. Essentially, the DAO module built by Oodles facilitates the launch within a few weeks instead of months. Additionally, it is not similar to a white-label DAO solution, which permits less customization functionality. With the Scaffold DAO solution, you can make customization as per business and user requirements.

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