A DAO purely manages funds: in itself it does not have the capabilities to build a product, write code or develop hardware. It requires actors in the physical world for this purpose, coordinated by a Service Provider. The Service Provider is hired by signing off on a proposal. This proposal is written in plain English and backed by smart contract defining the relationship between the DAO and its Service Provider: deliverables, responsibilities and operating parameters.
A Primer to Decentralized Autonomous Organizations (DAOs)
Stephan Tual
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important clarification