A lot of people have been wondering what the power of the DAO principle holds exactly, and how useful this will be to other Ethereum users. Although not everyone in the world will create their own DAO n the future, there are a lot of advantages to this concept, to say the least.
A DAO Equals Autonomous Business Management
Explaining the concept of a DAO has been done before, but similar to how cryptocurrency works, seeing is believing for the everyday consumer. Creating a business on the blockchain that can run itself in an autonomous manner attracts plenty of ideas, and the total package is quite appealing to boot.
There are several aspects to creating a DAO, which aims to give the creator full control over how the business will be formed. First of all, there is the name to come up with, and it is important to get this right from the start. Keep in mind the DAO information will be recorded on the Ethereum blockchain, which will serve as a permanent record.
As part of the DAO creation process, the business owner has a chance to create his or her currency or taken as well. This will be particularly interesting if the business owner decides to run a crowdfunding campaign as well. Once again, not every DAO will be subject to a crowdfunding campaign, nor will every attempt to raise funds to be successful.
Another worthy aspect of creating an autonomous business on the blockchain is how the DAO creator can add voting rights to the organisation. How this structure looks is entirely up to the creator, and eventual board members who are added later on. Owners can also add a proposal to create a leaderless company in the future.
Last but not least, a DAO is all about participation and suggestions. All board members of such a business can create new proposals, which are then voted on. These proposals can range from the allocation of funds to adding or removing new members, or even shutting down the DAO in its entirety. Exciting opportunities abound for everyone willing to venture into this world.
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