Whats good about DAOs?
∙ Authorizations happen by consensus voting rather than by a board of directors.
∙ Everything is public, and nothing is hidden.
In which currency do I get paid?
You generally obtain a bounty reward in the token of the DAO, although stablecoin rewards (like USDC) are also used.
Before you needed connections and a lot of meetings with VCs to raise a bunch of money, now with DAOs, you only need a mission and a community of like-minded people like you to make it into a reality.
But how do they raise funds?
DAOs use tokens or NFTs to collect funds for their venture, each of them contains a vote that can be used to decide the direction that the DAO might take. Think of it as an upgraded version of a stock pool option where anybody can join.
What if someone steals the funds?
No, that can’t be done; DAOs need the approval of their voters before any changes are implemented. This implies taking money out, making it hard for people to use the DAOs fund to pay their own expenses.
Votes? Tokens? How do I earn them?
Those can be airdrop by the DAO, bought from a DEX, or earned bounty. Votes are typically tied to tokens; although alternative gov mechanisms can exist too
What happens after the vote?
Because DAOs are run in code, the implementations happen automatically after a vote is finalized.
Ok, that’s cool, but how do I know where the funds are going?
That’s the best part; opposite to conventional web2 organizations, DAOs are on a public ledger, meaning that anyone can take a look at the funds and transactions at any time.
Ok, but how does it work?
DAOs use what is called a smart contract. It defines the rules of the organization and holds its treasury. Once live, the only way to change the rules is by vote.