What are DAOs

And the types of it.

The spirit of Web3 is Decentralized Autonomous Organization (DAO).

Decentralized Autonomous Organization — They are basically organizations that don’t have “leader(s)”, but still have the ability to make decisions and act automatically (smart contracts) via the choices of the group i.e. crowdsourced decision makin .It refers to organizations with no central leadership. Decisions get madefrom thee bottom upp, governed by a community organized around a specific set of rules enforced on a blockchain.

To sum it up, DAOs are
✔ Decentralization: Not governed by one single, centralized entity.
✔ Autonomous: The DAO can automatically execute operations on its own without any intervention.
✔ Organization: The DAO is governed by its own predetermined rules, like an organization.

1. Protocol DAOs:
These DAOs are focused on developing and maintaining blockchain protocols, such as Ethereum or Bitcoin.

~ Ethereum Foundation: A non-profit organization that supports the development of the Ethereum blockchain.
~ Bitcoin Core: A group of developers who contribute to the development of the Bitcoin protocol.

2. Asset Management DAOs:
These DAOs manage and invest in digital assets, such as cryptocurrencies, tokens, or other blockchain-based assets.

~ MakerDAO: A decentralized lending platform that issues a stablecoin called DAI, which is pegged to the U.S. dollar.
~ Kyber Network: A decentralized exchange that allows for the trading of cryptocurrencies and tokens.

3. Social DAOs:
These DAOs are community-driven organizations that work to support various social causes or initiatives.

~ Gitcoin: A platform that allows developers to get paid for contributing to open-source projects.
~DAOstack: A platform that allows for the creation and management of DAOs.

4. Service DAOs:
These DAOs offer services, such as computing power, storage, or other resources, that can be accessed by individuals or organizations.

~ Golem Network: A decentralized computing network that allows users to rent out their unused computing power.
~ Aragon Network: A platform that allows for the creation and management of decentralized organizations.

5. Hybrid DAOs:
These DAOs combine the characteristics of multiple DAO types to create a more versatile and adaptable organization. Examples include:

~ Uniswap: A decentralized exchange that uses an automated market maker algorithm to provide liquidity.
~ Compound Finance: A decentralized lending platform that allows users to earn interest on their cryptocurrency holdings.