DAO Development Explained

DAO is an acronym for “Decentralized Autonomous Organization” which exists entirely on Ethereum blockchain and is governed by its protocols and its creators. This allows two or more entities in it to interact with each other in a fully decentralized and automated fashion and simultaneously removes manipulation or fraud dilemmas. The working process of any DAO is similar to crowdfunding programs.

Some uses of DAO includes:

  • Sharing of data
  • Raising funds for investing
  • Voting
  • Confidential money transfer


Step 1: DAO is developed using “Solidity” programming language.

Step 2: To implement DAO, it must be deployed on Ethereum Blockchain.

Step 3: Once implemented, Ethers can be sent using DAO to DAO’s smart contract address.

Step 4: Here, “Tokens” are created everytime an Ether is exchanged. Each token is respective to a particular Ether.

Step 5: These tokens are assigned to the account of the person who transferred Ether.


In case you like to have a little insight, followings are the Solidity files which are used for DAO development:


Standard smart contract for any generated Decentralized Autonomous Organization (DAO) to automate organizational governance and decision-making.


Defines the functions to check token balances, send tokens, send tokens on behalf of a 3rd party and its corresponding approval process.


Token Creation contract, used by the DAO generated by the framework to sell its tokens and initialize its ether.


Sample Proposal from a Contractor to the DAO generated by the framework.


Basic account, used by the DAO contract generated by the framework to separately manage both the rewards and the extraBalance accounts.


This contract is used as a fall back in case an exchange doesn’t implement the “add data to a transaction” feature in a timely manner, preventing it from calling createTokenProxy().

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