Core DAO Features

Organizational structure has remained relatively unchanged since the development of the corporate form in the 17th century. This stagnation presents an opportunity to enhance and optimize aspects of collaboration. DAOs offer a novel way of attracting, organizing, governing, and incentivizing talent by integrating blockchain into the organizational framework. This democratic approach to community-building and the alignment of project ownership and compensation through contribution deviates from the principles of existing centralized organizations. Further, DAOs are fundamentally versatile, giving rise to greater role flexibility, motivation-driven rewards, and broader participant connectivity. DAOs are still early in their lifecycle, which presents a vast, undiscovered landscape of significant opportunities for reform and growth. As of May 3, 2022, over 4,000 DAOs hold more than $9 billion in treasury—compelling and ever-increasing numbers for a novel organizing technique that has not fully matured.

DAOs are most similar to cooperatives in the traditional world—organizations, such as unions, run by workers and customers that do not limit roles or pigeonhole contributors. DAO members choose all aspects of their involvement—project collaboration, time worked, the longevity of engagement, and compensation terms—which fosters personal freedom and a voluntary communal culture. Ownership of a DAO’s project and having a voice in its trajectory personalize the experience and promote loyalty.