What’s In A DAO?
Welcome to Crypto Witch Club’s 101 on all things DAO! In this DAO demystification, we’ll share DAO basics, how they operate, and how you can get involved.
We’ll also give you a shortlist of DAOs you can get started with: from art curation to DeFi, marketing guilds, and sustainability collectives. An extended version of the article will be featured in our upcoming ‘zine — World Witch W3B, Issue #1. This ‘zine will be available for free to all Club Card holders. Learn more about how to join our Club Card Community here and mint your first Club Card here. Our current sticker challenge — All About Tokenomics — is open for another 2 weeks. Collect them all and get your 2nd Club Card sticker locked in before the drop ends!
Demystifying DAOs
Decentralization is at a DAO’s core
DAO is an acronym for “Decentralized Autonomous Organization,” and it’s a type of organization that operates on a blockchain network, such as Ethereum.
In traditional organizations, there’s typically a hierarchical structure with a centralized decision-making authority. (Think employees, managers, c-level, and shareholders.) By contrast, in a DAO, decision-making is decentralized, meaning that it’s spread out amongst the members of the organization, and each person has a say in how the organization operates. These capabilities are achieved through smart contracts that automate decision-making based on the consensus of the organization’s members. Because a DAO is autonomous, self-governing, and operates according to pre-defined rules and code that’s built into the blockchain, there’s no need for a centralized authority to manage the organization. (NICE!)
What can a DAO do? A few things! DAOs can manage decentralized protocols. DAOs can be used as vehicles for group investments. DAOs can be a club or non-profit. DAOs can also be a branding or marketing agency. DAOs are still a relatively new concept, not recognized as a legal entity (yet) and there’s still a great deal of experimentation and innovation happening in the space. As web3 technologies continue to develop and mature, it’s likely that we’ll see more types of DAOs emerge.
How to Get Involved?
Find your fellow DAO baddies and learn how you can contribute
Join a DAO: The easiest way to get involved in a DAO is to join an existing one. There are many DAOs out there focused on different areas, such as governance, investment, art, or social causes. Find one that best aligns with your interests and values. Join as a member and participate in decision-making, contribute to the DAO’s collective mission, and earn rewards for your contributions.
Propose a project: DAOs are often looking for new projects and ideas to pursue. If you have a project that aligns with the DAO’s mission, propose it to the community. If it’s approved, you can lead the project and earn rewards for its success.
Vote on proposals: DAOs make decisions through community voting. As a member, you have the right to vote on proposals that are put forward. Make sure to educate yourself on the proposal and its potential impact before casting your vote!
Contribute skills: DAOs are made up of members with diverse skill sets. If you have a particular skill that could be useful to a DAO, such as design, development, or marketing, offer your services to the community. You can earn rewards for your contributions and build your reputation within the DAO.
Create your own DAO: If you have a specific mission or vision that isn’t being addressed by existing DAOs, you can create your own. This can be done with a group of like-minded individuals who share your values and goals. There are tools and platforms available to help you set up and manage your own DAO, such as Aragon or DAOstack.
Need help finding the right DAO for you? Here are some favorite DAOs we found within our witchy web3 community.
DAOS to Discover for Crypto Witches
What’s your vibe?
DeFi: Uniswap
Uniswap is a decentralized exchange that allows users to trade cryptocurrencies without the need for a centralized order book. Its governance is controlled by the UNI token holders.
Creator Economy: Friends with Benefits
Friends With Benefits is a social DAO that supports community-driven projects and provides benefits to its members. Its governance is controlled by the FWB token holders.
Art + Design Investment: FlamingoDAO
FlamingoDAO is a community-driven art investment DAO that purchases and holds high-value art pieces. Its governance is controlled by the FLAMINGO token holders.
Environmental: KlimaDAO
KlimaDAO is a decentralized sustainability DAO that fights climate change and allows users earn rewards with KLIMA, a digital currency backed by real carbon assets.
Marketing + Design Services: Raid Guild
Raid Guild is a guild DAO that focuses on providing design, development, and marketing services to blockchain and Web3 projects. They have a network of experienced professionals who can help projects with everything from smart contract development to community management.
Have Your DAO 101 Skills Down?
Feeling like a DAO witch?
Head to our website and take the quiz to see how much you’ve learned so far!
Want to learn more? Join the Crypto Witch Club Community here and chat with fellow web3 witches on DAOs they love, how they’re contributing, and ask any DAO-related questions you may have. We love networking together and growing together at Crypto Witch Club!