DAO governance models: A beginner’s guide
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Loading... - Hakim Taleb
- 02 Feb 2023
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What is DAO governance?
Creator of Bitcoin (BTC) Satoshi Nakamoto published the BTC white paper more than a decade ago, proposing a decentralized, peer-to-peer (P2P) system. Although it was originally intended to be used as a P2P currency system, the new technology now allows users to transact while maintaining data integrity and security.
The advent of blockchain has prompted concerns about new governance models involving various parties. In 2013, decentralized autonomous organizations, or DAOs, were first called decentralized autonomous companies (DAC), with a cryptocurrency serving as shares in a DAC whose bylaws are defined by source code.
DAOs, in theory, do not represent a single application but rather a firm that does not have a typical physical structure. The idea is that it runs entirely autonomously, with humans (as users) having voting power in some procedures. DAOs, unlike conditional transactional programs, are not built and maintained by firms with profit motives because they are “owned” by the users.
There are various decentralized governance models such as ConstitutionDAO, Ethereum Name Serice DAO, Friends With Benefits DAO and JuiceboxDAO, to be explained later in this article. This article aims to explain the role of DAOs in decentralized governance, how DAO treasury management works and various DAO models for governance decentralization. Read More…
