Decentralised Autonomous Organisation

Decentralized Autonomous Organization

Decentralized Autonomous Organisation is a new paradigm shift of economic organization. It offers complete transparency, total shareholder, remarkable flexibility, and independent governance.

DAO is an entity in a digital system, thus it is facilitated by smart contracts. Smart contracts include digital tools and protocols that help support specific transactions or other contract elements.

 

DAO is autonomous for two reasons:

1. No government could shut it down.

Theory wise, it could be run completely by algorithms. A DAO cannot be shut down by a government as there is no technical requirement for the DAO to be registered as a company in any country’s legal system.

A government cannot seize a DAO’s funds considering they are held in a smart contract. A government can cordially ask for a DAO to pay taxes, but a DAO does not exist in any one country but is instead distributed across the Blockchain in hundreds of countries.

The DAO works with famous cryptocurrency and digital ledger operations that numerous world governments and businesses are moving toward for more transparency and for evolving anti-corruption innovations.

 

2. Humans are not required to be shareholders.

It is entirely possible to program an algorithm to own shares in a DAO, and vote in proportion to the shares that it owns.