What Are DAOs? Technicalities Behind the Blockchain Tech

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DAOs allow organization members to freely submit proposals to help toward the future of Web3

Once delving into NFTs, crypto, and all things Web3, you will likely hear the word “DAO” crop up time and time again. But what does this buzzword even mean?

DAO is an abbreviation for Decentralized Autonomous Organization. Understanding DAOs and the technicalities behind the blockchain technology is vital for anyone wanting to contribute to the world of Web3.

So, if your ears prick up when hearing about anything crypto-related, here’s everything you need to know about DAOs and more:


First and foremost, a DAO is a community-led entity on the blockchain with no central authority. DAO members can govern who make vital decisions about a the entities future, including treasury allocations and technical upgrades.⁠ They get together to create protocols before voting on the best ways forward for a project held on the blockchain—whether being an NFT collection, metaverse, or dissimilar tech-savvy platforms. Much is achievable through DAOS.

All DAO members must abide by the guidelines instantiated within the smart contract on the blockchain network chosen for the project. This procedure allows DAOs to move on with plans safely and securely.


DAOs are visible, verifiable, and publicly auditable, so all members can easily understand how the protocol functions at every step while having the know-how between what’s allowed and what is not.

Once DAO members publish the project’s requirements on the blockchain, it’s time to figure out how to grant governance and receive funding to make future project plans possible.

Providing funding for the DAO goes as planned, the project is ready for deployment. However, members cannot tweak decisions unless everyone agrees to do so after pushing the code into production. 

To bring the ideas to the surface, investors must fund DAOs appropriately. Then, once funding is complete, it’s time to make the plans a project.

In turn, the tokens which each DAO member controls shall increase in value, benefiting both the protocol and the token holders alike.


There are many ways to get involved in the DAO of a project once finding the most suitable one. Firstly, it’s vital to ensure the protocols align with your principles, before figuring out its functions.

It’s critical to note that protocols vary depending on the DAO. Typically, those that have spent a lot of FIAT to become a token holder have more say in future projects.

The protocols differ depending on the project. Some DAO members may have voting rights on the portion of fees needed for distribution purposes. In other cases, token holders may have the opportunity to vote on what the protocol fees go towards, like big fixes or system upgrades. It depends on the DAO itself, alongside its smart contract.

You will never fully understand DAOs and how they work unless taking a leap of faith and joining in the community. This is achievable by joining the DAOs Discord channel, before introducing yourself and learning best ways to contribute (depending on your free time and technical abilities).

DAOs have much transparency. Token holders can observe voting records and help towards making better decisions through community and funding. Thus, crypto enthusiasts can become entrepreneurs in the space and help build a much needed decentralized world.

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