How to Make a Dao?

How to make your own DAO?

Getting Started

The main characteristic of everything in the crypto world is that assets don’t depend on authorities. DAO is just a mechanism that helps to provide governance in this universe. Some technological instruments and a few tips from experts will help everyone to start a DAO and run it successfully. However, before you start launching one, it’s vital to learn more about the concept of decentralized autonomous organizations. Here are the key points you need to be aware of.

DAO’s treasury and its peculiarity

Introduction to DAO

A decentralized autonomous organization is a special membership that is run automatically. Everyone who meets pre-determined requirements can become a member of a chosen DAO. DAO operations are executed with no individual involvement because the systems apply smart contracts to do this. All assets and products, governed by a specific membership, are managed by its community, consisting of members who have the right to place their offers and vote for them.

  1. Token holders can vote. The voting power corresponds to the amount of held tokens.
  2. Token holders may offer their ideas of how the DAO should operate or develop.
Making your own DAO. How to create a DAO?

Is It Relevant to Start a DAO?

DAOs, in fact, may provide a lot of considerable benefits to projects that are developed on blockchain-based networks. Probably, the fact that the concept relies on smart contracts is the biggest advantage here. Thanks to this, organizations depend on humans only to a very small extent. When this involvement is minimized, the proposals and changes can be activated in an automated mode. Besides, no votes, which meet the requirements of the DAO, are neglected.

Your first DAO with ICODA

Basic Requirements

In order to start such membership, you should follow some basic requirements. Here are the most important ones:

Don’t Start It if There Is No a Clear Purpose

There is no point in launching a meaningless DAO. Every new business that follows this concept should have a solid project or product. Because DAO isn’t an entity — it’s just a mechanism to manage serious projects.

Work on the Voting Mechanism

Members of any DAO cooperate with each other and bring something new via the means of voting. You might consider different options when it comes to creating a voting mechanism. The easiest way is to use the services of third-party providers who already have efficient models. If it won’t satisfy your members, it’s possible to change it via voting.

Create a Token

DAO’s tokens are the instruments that are used by participants to prove their right to vote and propose changes. You may apply either governance tokens or utility tokens.

Gather a Community

The major purpose of any DAO is to make processes unauthorized. The more various people take part in this, the better decentralization will be provided since the right to make decisions belongs equally to different token holders.

DAO Creation

Here we come to the technical side of DAO creation. From the paragraph above, you already know that the voting mechanism is one of the most important features of your future DAO. You can use different open-source solutions to work on it. If you are going to run your DAO on the Ethereum blockchain, you will be likely to choose Aragon. If you aim to work in different blockchains, you should take Snapshot into account. Basically, all these solutions have the same purpose and very similar structures. They differ in the ways they operate.

Aragon

If you want your DAO to operate on blockchains such as Ethereum, Polygon, Andromeda, or Harmony, Aragon is the priority tool for you. The clients of the platform can access open-source instruments to design and launch a DAO. The curious fact is that money for the Aragon platform is controlled via a DAO.

Snapshot

Snapshot is a customizable off-chain voting mechanism. The tool applies digital signatures that are used to register votes based on a snapshot of token owners. A certain block is chosen, and all token holders and/or stakeholders have their holdings noted. This model is a good preventive mechanism against buying more tokens to have more voting rights.

DAOstack Alchemy

If you want to start a DAO on Ethereum or Cnosis Chain, you might also use the tools of DAOstack Alchemy. It has a very easy-to-navigate interface, which provides the ability to create a simple DAO and easily add DAO members.

Bottom Line: Is DAO Worth Creating?

A DAO is definitely worth creating if you want to provide full transparency, start a fully democratized organization with different members who will vote for proposals and provide changes to your crypto-projects. It doesn’t require impressive funding or any specific technical skills to work within the Ethereum network or any other blockchain without a central authority. But you should realize that DAOs don’t become successful if their members don’t pay an effort and if these members cannot form an effective community.

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