What is a dao & how does it work?

What Is a DAO? DAO stands for decentralized autonomous organization, which is a fancy term for a group of people who agree to abide by certain rules for a common purpose. Those rules are written into the code of the organization via smart contracts—algorithms that run when certain criteria are met.

Is Dao a noun or a verb?

Owing to the contextual nature of Chinese languages and depending upon its use in a sentence, dao can function as a noun or a verb. It may indicate the road upon which one travels, the act of wayfaring or traveling down a road, or even the act of way-making by leading someone down or constructing a road.

Is there a hierarchy in a dao?

Unlike traditional organizations, there is no hierarchy in DAOs. Rather, to align interests of the organization with that of its members, DAOs incentivizes a distributed network of users to achieve their goal.

When did Dao start?

Although the term may be traced back to the 1990s, it was not until 2013 that it became more widely adopted. Although some argue that Bitcoin was the first DAO, the term is only understood today as organizations deployed as smart contracts on top of an existing blockchain network.