What is a DAO?
This article will explain how a DAO works. Since the THNDR DAO is coming, some education is vital.
What is the goal of a company, community, or brand?
Companies, communities, and brands at their base level are groups of people. Groups of people that have the same goal, the same vision, and the same purpose.
The goal can be education, entertainment, and creating products that make life more comfortable, and better.
But how do you run a group of people? How do you make sure everyone participates and helps the vision go further?
The Corporate way
In Web2, in the old world, the usual way of running a group of people is creating a company.
The company then has its shares. People that own the shares can use them to vote on the future of the company. They have the ability to decide what happens next.
In order to create a company, you need to fill out different forms and become a part of the system. You have to involve the Government in your operation.
But what if you don’t need any physical building, to push your idea forward?
We are now in the era of the internet. Ideas can be born through the internet, and no physical meeting is necessary for people to get behind a vision.
What if all you need is people that get behind your idea over the internet?
That is when the power of DAOs enters the picture.
The DAO way
In Web3, the idea of a DAO was born.
Instead of having to start a company, people can start a DAO.
DAO = Decentralized Autonomous Organization
Decentralized = there isn’t any one person controlling everything. The people control the DAO.
Autonomous = having the freedom to govern itself or control its own affairs.
Organization = a group of people with a certain purpose.
Instead of company shares, people can use NFTs and ERC20 tokens for voting.
How does a DAO work?
Usually, it is an online website. Visible to everyone and transparent.
People that hold a certain token, or a certain NFT, can create and vote on proposals within the DAO.
For example:
There is a DAO of an NFT collection focused on financially supporting animals.
Let’s say the NFT collection has minted out, and currently has 20 ETH in the community wallet.
You are a holder of one of the NFTs, and you are following a local animal shelter in your area, and seeing how they help animals, you want to support it.
You can access the DAO website, and write a proposal for using a percentage of the collection funds to support that shelter.
1 NFT = 1 Vote in the DAO.
Everyone who owns the NFT can now go to the website and vote whether they agree or disagree with your idea.
People can coordinate ideas, work together, and create wonderfully life-improving impact, all through the internet, in a Decentralized manner.
There is no need for a physical meeting. We are in the internet era, and our thoughts and ideas flow through the internet at a much faster rate, than they travel through the physical corporate world.
That is the beauty of DAOs.
We here at Island Thunder believe that decentralization is the way. For that reason, each team member is the resident expert within their respective positions and we all move forward collectively. In addition, we want to include the community members in the future plans of the project and the Thunder DAO will be they way that this is implemented.
Connect with us
Thank you for reading this Article. If you have any questions, come ask in our Discord or join one of the Twitter Spaces happening daily through our Twitter!
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