All you need to know about DAOs. What are the benefits & what types of DAOs are there?

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What function does a DAO serve?

How does a DAO function?

How do I start a DAO?

  1. Development of smart contracts
  2. The creation of funds through various investment rounds
  3. Deployment

What Advantages Does a DAO Offer?

  • All members are able to have an opinion on the organization’s core functions.
  • Decisions are made jointly because there is no management team.
  • Shares can be bought and sold directly between members.
  • Members of the organization may get dividends.
  • The algorithm handles a lot of business operations without the need for human involvement, resulting in:
  • Fewer errors.
  • Cheaper transaction costs.
  • Corruption is avoided.
  • No human bias

What Dangers Can a DAO Pose?

  • Anyone who loses their cryptographic key will be removed from the group since they cannot be recovered.
  • Some DAOs’ programming codes contain bugs from time to time, which might result in unintended obligations and investment losses.
  • Certain disputes might not be covered by the smart contract code, making it difficult to resolve them through the traditional legal system.
  • Users might need to evaluate and confirm decisions prior to their execution because the algorithm is only as good as its programming instructions.

Types of DAOs:

  • Protocol DAOs / Community DAO
  • DeFi Protocol DAO
  • Philanthropy DAOs
  • Collector DAOs
  • Investment & Venture DAOs (for example LIFT99 DAO)
  • Grants DAOs / Launchpad DAO
  • Social DAOs / Creator DAOs
  • Media DAOs
  • Sub DAOs
  • Entertainment DAOs
  • Service DAOs
  • DAO operating system

Which types of the community should consider becoming a DAO?

  • Communities of Artists, Creators, Musicians -> Social DAO or Media DAO
  • NFT collectors community -> Collector DAO
  • Agencies & talent hunting -> Service DAO
  • VC & funds -> Investment DAO
  • The philanthropic organization, charity -> Philantrophy DAO
  • Entertainment platforms -> Entertainment DAO
  • Communities of news and blog writers -> Media DAO
  • DeFi startups -> Protocol DAO
  • Willing to take the risk despite the downsides
  • Ready to embrace decentralization, automation, and other benefits
  • Want safe and secure transactions that are free of government, or other external restrictions

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