❓What is a DAO?
Decentralised Autonomous Organisation
D.A.O. is an acronym for Decentralised Autonomous Organisation.
What does that mean? Let's break it down by the definitions of each term:
Decentralised = No single party in control. Consensus is reached through votes of independent nodes. Decentralisation is achieved through actions on the blockchain.
Autonomous = Operates on self executing processes without impedance from individuals or higher authorities. There is no single decision maker. Governance outcomes are determined through processes defined in the embedded smart contracts.
Organisation = A group of individuals with a common goal.
In the simplest definition, a DAO can be defined what it achieves:
"A DAO enables a group of people to work together in a formalised way toward a common goal."
In it's brevity the simple definition lacks some key attributes that sets a DAO apart from other organisations. Therein the benefits that set DAOs apart from any other type of organisation in history:
Contributions are transparently measured toward increasing the value of the organisation.
Contributors are rewarded in equity (not just payment)
Formality through structure and processes defined in smart contracts instead of legal documents (logic over interpretation).
Transactions, voting and decision making visible on the blockchain providing transparency and immutable data. (see: Governance)
DAOs - A recent history
Decentralised Autonomous Organisations (DAOs) are not new. Since the rise of blockchains and protocols foundations and organisation behind sought the use of consensus voting by members to make decisions. Various protocols and projects have focused on this core proposition.
DAOs exploded in popularity throughout 2020. Blockchain protocols and Non-Fungible Tokens (NFTs) collectable token projects lead the way and increasingly managed by DAOs.
Despite their popularity, DAOs are not trivial to create and provide challenges for their founders meaning only a small fraction of 'DAO's are in fact real on-chain DAOs.
Cakery is looking to solve that problem for the 1M+ 'DAOs' that need to 'soft formalise' now and tokenize later.
How? see "What is Cakery?" and keep reading "What problem does Cakery Solve?"
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