Since the boom of the cryptocurrency industry and the inception of smart contracts, Decentralized Autonomous Organisations has caught the eyes of all key players and top brains in the industry.
A DAO is an organization that is run on the terms that are specified or encoded in a computer program called a smart contract. Smart contracts became a massive hit in the crypto market after Ethereum made it easier to use and integrated them into the crypto market.
DAOstack is a governance solution platform for self-organizing collectives. It works off the Ethereum blockchain and promotes governance based on the smart contracts that are made. Using DAOstack community members can easily build open-source software products while distributing individual ownership based on a level of contribution.
How Does it Work?
DAOstack is an operating system using which open-source creators can work together to build DApps. The creators can also distribute ownership of the DApps based on the contribution of creators.
To any DAO, the two most important factors are agencies (a group of individuals) and the smart-contract. The agency makes a proposal for a DApp, sets the rules and guidelines of the smart-contract and is then voted on by all the people in the agency and majority wins on whether to execute or scrap a proposal.
Using the platform, users or a group of users (known as an agency) can perform the following tasks using the blockchain:
- Token Distribution: Each agency can create and distribute their own native tokens to contributors.
- Fund Allocation: The platform will facilitate token pre and crowd sales using the blockchain.
- Reputation: Members of a community have the power to assign ‘reputation scores’ to the individuals in their agency and others too. Making the platform a meritocracy.
Using the intrinsic guidelines of smart-contracts, the Ethereum blockchain makes sure that agencies/groups/teams are held responsible for making good on their DApp’s promises.
The public and presale are scheduled to take place in May. The private sale has a counter on their website that is counting down. At the time of writing this article, there are just a few days left
The emergence of DAOs has been the story of the last couple of years and with the right kind of ecosystem and technology developments, it could very well become the norm for companies in the years to come.
At the core, DAOstack aims to help enable such companies. It remains to be seen how this ecosystem develops in the future. The adoption is the only place that can make the product falter. Under the right circumstances, DAOstack has the right team and product to grow well.
Definitely worth a look if you’re in the market for a solid project to back.