By Steve, COO | NnsDAO Labs
DAO governance is one of interesting way that can create an organization that is both decentralized and autonomous to the fullest degree possible. There are different models that are used to operate DAO. Literally this is done through membership that can be determined on how voting works and other key parts of the DAO.
So far we have some common models in operating DAO such as token based membership and share based membership. Literally in token based membership it involves about fully permission less that also depending on the token used. However most of these governance tokens can be traded permissionlessly on a decentralized exchange.
Meanwhile others must be earned through providing liquidity or some other ‘proof of work’. This can be done by either way through simply holding the token grants access to voting. Eventually most of the cases used to govern broad decentralized protocols and tokens themselves.
For the case of share based membership is about more permissioned though still quite open. For any prospective members can submit a proposal to join the DAO, usually offering tribute of some value in the form of tokens or work. Shares represent direct voting power and ownership. Members can exit at any time with their proportionate share of the treasury. Final typically used for more close-knit, human-centric organizations like charities, worker collectives, and investment clubs. So it can also govern protocols and tokens as well.
The backbone of a DAO is its smart contract. The contract defines the rules of the organization and holds the group’s treasury. Once the contract is live on Ethereum, no one can change the rules except by a vote. If anyone tries to do something that’s not covered by the rules and logic in the code, it will fail. And because the treasury is defined by the smart contract too that means no one can spend the money without the group’s approval either. This means that DAOs don’t need a central authority. Instead the group makes decisions collectively and payments are authorized automatically when votes pass.
This is possible because smart contracts are tamper-proof once they go live on Ethereum. You can’t just edit the code (the DAOs rules) without people noticing because everything is public. This is according to the link here https://ethereum.org/en/dao/
What makes so far DAOs are being used for many purposes such as investment, charity, fundraising, borrowing or buying NFTs and all without intermediaries.
So for the example if you can have a better idea then a DAO can accept donations from anyone around the world and the members can decide how to spend donations. DAOs envision a collective organization owned and managed by its members with all of them having a voice. Many analysts and industry insiders affirm that this type of organization is coming to prominence, even potentially replacing some traditional companies.
Businesses and brands need to stay abreast of current trends that could impact how they engage with consumers and how consumers interact with them. While DAOs are not ubiquitous yet, they do seem to be picking up steam with many creators.
All of these are coming from https://www.forbes.com/sites/cathyhackl/2021/06/01/what-are-daos-and-why-you-should-pay-attention/?sh=33d0854e7305
