What is a DAO?
A DAO (Decentralised Autonomous Organisation) is an internet-based
community with a shared bank account. For efficiency, all instructions
and transactions are automated by the use of a ‘smart ‘contract.
That all sounds a bit dry? A bit too techie perhaps?
Let’s try to unravel the meaning of a DAO and bring it to life for you.
Stephen Lennox is 21 and from Liverpool, England.
Stephen’s story is remarkable; one of bravery and courage. Diagnosed
with Colitis, Stephen was of very poor health and was in and out of
hospital for months on end.
He not only took his personal challenge head-on but in the midst of
it, he set up a charity for Crones and Colitis on behalf of Whiston
Hospital whose care had inspired him.
On Saturday, March 4th, 2022, Stephen held his most recent charity
event and raised over £1000. Although this was an incredible
achievement, Stephen remained frustrated that his vision to raise £1M
would take a very long time.
With public interest increasing, he continued to explore for better
ways to organize and create a shared responsibility for those wanting
to join his movement.
Stephen then came across the concept of a DAO.
You see, a DAO does not need to be a dry complex technology solution,
it is simply a way to create a movement to assist large groups of
people in making decisions as a collective team. Upon joining the DAO,
individuals agree to a set of terms e.g. how to allocate funds, which
can then be automated as donations enter the account.
Creating the LennoxDAO
Stephen decided to reach out to the gathered audience of 200 from his
previous charity night. Much to their surprise, all those who donated
on that evening were awarded LennoxDAO tokens and became part of the
online charity community.
The DAO enabled them to more easily share ideas on how to raise
awareness of colitis and accelerate fundraising It started very
simply, each token-holder was committed to gaining just one new person
to join the fund. It was then recorded on the blockchain.
The next charity dinner is scheduled for August 2022, and anticipate
it will host not 200, but nearly 400 active participants who will
again, in turn, be issued with LennoxDAO tokens, significantly
increasing the fundraise.
But could they ever raise the £1 Million goal?
Well, by forming the LennoxDAO others were now part of the governance
to raise money, but it wasn’t just the money they brought, the skills
of the people within the group could suddenly become very relevant.
One, a lawyer, is able to help structure the legal aspects of the
smart contract structure. Another, a marketing specialist can take
responsibility for marketing and build a social network on MetaLife
Social and other platforms to extend the word.
Forming a community can also offer hidden side benefits and unexpected
rewards. The group now has a stronger buying power and could
potentially do deals with a retailer and secure a group discount.
So, what started as an idea-driven by passion can now be
transformed into a movement under the power of the DAO.
The concept of a DAO is not new, think of a cooperative or mutual
a fund set up in the 1900s which worked much on the same principles but
was in effect a community with a common financial interest such as
life insurance; each making a contribution to a central pot and, in
the effect, each becoming a shareholder/beneficiary.
You can see a DAO as a modern-day version, but with much more capability.
The DAO ensures the funds are held securely, transactions are
transparent and transmutable but most importantly, there is
opportunity to create a social movement. DAOs are growing. In 2018
there were only 10 but in 2022 there are now over 4000+ have been
created; accelerated by the growth and interest of Crypto and NFTs.
At MetaLife, we acknowledge that building a DAO is not so
straightforward and whilst there are a number of players in the market
to help build your DAO foundation including Aragon, Colony and Tribute
Labs that effectively offer Software as a Service DAO; still remains
To add to the confusion, there are several other DAO formats including
DAO Protocols (Gnosis-safe. Multi-sig wallet, Consensys ), DAO DeFi
(Uniswap, Nexus Mutual) and DAO legal specializing in (OpenLaw); I
could go on…
So it is clear that several elements are required to develop a DAO,
but the good news is that MetaLife can help you navigate the Maze.
MetaLife is a Metaverse Protocol, agnostic of all the different
internet infrastructure offerings and we partner with the ‘best of
breed’ to make your DAO build simple, quick and effective.
If you share Stephen’s passion for addressing Colitis, you will be
able to follow his progress via MetaLife Social or perhaps, with our
support, create your own DAO?
MetaLife, simplifying the complex.
Join the coolest stars in the metaverse:
Join us for early access and airdrops: https://discord.gg/Pwy6j63sTV