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2. Intermediate Course

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  1. 1. Ethereum 2.0 - What is it? 
  2. 2. What is cryptocurrency burning?
  3. 3. How to create your own cryptocurrency? 
  4. 4. Blockchain Oracle - what are oracles? 
  5. 5. How to make money with NFT?
  6. 6. What is an ERC20 token and how is it created?
  7. 7. The Metaverse – a new virtual world
  8. 8. Metaverse – TOP 15 virtual reality projects
  9. 9. Technical analysis – is it worth using?
  10. 10. What are DeFi liquidity pools?
  11. 11. Second layer (layer 2) - what is it? 
  12. 12. What are wrapped tokens 
  13. 13. What is the Lightning Network, and how does it work?
  14. 14. What are security tokens?
  15. 15. What is play-to-earn (P2E) and how does it work?
  16. 16. What are Social Tokens? 
  17. 17. Examples of the use of WEB3 on the blockchain
  18. 18. What is Web5? 
  19. 19. Ethereum London Hard Fork - what is it ? 
  20. 20. Segregated Witness - what is Segwit Bitcoin all about?
  21. 21. Polkadot - Decentralized blockchain and DOT cryptocurrency
  22. 22. Polkadot Parachain - Next-generation blockchain
  23. 23. Set up of Stop Loss and Take Profit orders
  24. 24. Trading order types: stop loss, trailing stop loss, LIMIT
  25. 25. What are Decentralized Cryptocurrency DEX Exchanges?
  26. 26. What is Curve Finance?
  27. 27. What is GameFi and how does it work?
  28. 28. Non-fungible tokens and NFT exchanges
  29. 29. Cryptocurrency steps - What is move to earn M2E?
  30. 30. What is Proof of Reserves (PoR)? How does it work?
  31. 31. Interoperability in the world of cryptocurrencies and blockchain
  32. 32. Blockchain and its layers - What is layer three in Blockchain (L3)?
  33. 33. What is Layer 0 in Blockchain technology?
  34. 34. What is layer 1 in Blockchain?
  35. 35. What is MakerDAO and DAI Stablecoin?
  36. 38. What is the SubDAO protocol, and how does it work?
  37. 39. The main differences between static NFT and dynamic NFT
  38. 40. Liquidity Provider Tokens (LPs). What are they, and why are they so important?
  39. 41. What is KnowOrigin NFT, and how does it work?
  40. 42. What is decentralized social media?
  41. 43. What is the Ethereum Name Service (ENS) and how does it work?
  42. 44. Arbitrum: Ethereum scaling solution - everything you need to know
  43. 45. Ethereum ERC-4337 - what is it and how does this standard work?
  44. 46. Sustainable Blockchain - Proof of Useful Work & Flux
  45. 47. Ethereum Proof-of-Stake (PoS) - what should you know?
  46. 48. Atomic Swap: What is an atomic swap, and how does it work with cryptocurrencies?
  47. 49. What Is Cryptocurrency Vesting? What Are Its Advantages?
  48. 50. What Is the Metaplex Candy Machine Protocol? How Does It Work?
  49. 51. What Is the BNB Greenfield Ecosystem?
  50. 52. Real Yield in DeFi - what is this trend? What does it consist of?
  51. 53. Polygon 2.0 - the value layer for the Internet
  52. 54. What Is Slashing in Cryptocurrencies?
  53. 55. How to Create Your Own Decentralized Autonomous Organization (DAO)?
  54. 56. The ERC-721X VS ERC-721 Standard – Key Differences!
  55. 57. Royalties – What Are They? How Does This Type of Licensing Fee Work?
  56. 58. Polygon 2.0 - the value layer for the Internet
  57. 59. ERC-6551 - the new NFT standard. What does it bring to the non-exchangeable token sector?
  58. 60. What is TradFi? The importance for cryptocurrencies!
  59. 61. What is the Real World Asset (RWA) trend in cryptocurrencies? Explanation and examples!
  60. 62. Pyth Network: a powerful oracle harnessing the power of Solana!
  61. 63. NFT Gas Fee - what is it? How can you reduce your gas fee?
  62. 64. MINA Protocol: the lightest blockchain in the world!
  63. 65. Market Cap versus Fully Diluted Market Cap - the most important differences you should know!
2. Intermediate Course 55. How to Create Your Own Decentralized Autonomous Organization (DAO)?
Lesson 53 of 63
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55. How to Create Your Own Decentralized Autonomous Organization (DAO)?

Online you can find many tips on how to create your own DAO. Some sources indicate that it can be done in a few steps, and others that it takes a little more commitment. We also favor the latter option.

In today’s lesson, we’ll recall in a few words what decentralized autonomous organizations (DAOs) actually are, and then we’ll look at how to build one, step by step. Let’s get started!

Decentralized Autonomous Organizations (DAOs)

We have already written for you about autonomous organizations. The link to this lesson is under today’s article. Knowledge is always worth updating.

Let’s now delve into the topic and clarify what exactly this DAO we want to build entails. Essentially, it is an organization constructed on open-source software, run by smart contracts, and distinctly lacking the conventional hierarchical structure found in nearly all corporations.

DAOs operate completely transparently, according to specific rules and written in the code. An important element of decentralized autonomous organizations are its users, especially those who hold its native tokens. It is the owners of these tokens who vote on proposals, facilities or improvements to the network, all of which are intended to benefit the community as a whole.

Also, the DAO usually has something like a treasury. It keeps its reserves there. It is through these that the community’s ideas are implemented. Just like in corporations, where they reinvest their profits in order to develop their core functions.

Key Features of Decentralized Organizations

The very idea was born in 2013. Of course, a key feature of the DAO is decentralization. In these structures we will not find third parties with exclusive decision-making power.

Blockchain technology forms the foundation of decentralized autonomous organizations. To put it completely simply, a DAO is an application deployed on a distributed network (blockchain). The most popular blockchain on which a DAO is created is, of course, Ethereum. However, it would seem that Solana and NEAR will soon change these statistics.

Before Creating Your First DAO: What You Need to Know

There are several key points to consider before you create your organization. First of all, DAOs are not corporations. Corpo-rats will certainly not find themselves comfortable within this structure. Decentralized autonomous organizations do not adhere to formalities and do not entertain unnecessary phrases. There is no room for unnecessary paperwork, which, however, causes some problems. It is the DAO members who bear full responsibility for the network. Thus, by opting for this type of organization, you may be losing a lot more than just your capital.

Secondly, decentralized autonomous organizations are not regulated by law. Because of their decentralization, they are not recognized as legal entities in most countries. In practice, they do not enjoy the privileges of traditional corporations or government protection. Any legal disputes that arise within this structure are extremely difficult to resolve.

Another issue is identity. The DAO’s decentralized structure allows members of the organization to remain anonymous. There is no KYC verification here, which may be particularly important to some. There are no coffee breaks or banana Thursdays. You won’t learn anything about the people you work with. Well, except for the addresses of their wallets.

How to Build Your Own Organization?

OK, you already know all about DAOs and what to pay special attention to. Now it’s time to put things into practice. So how do you build your own decentralized organization?

  1. First, define the structure of your organization.

Before you write to a developer that you would like code for your organization, think carefully about what you actually expect from it. Answer a few questions for yourself:

  • What is your goal when creating a DAO?
  • What do you want to achieve with it? What decisions will it make?
  • Will the DAO solve some problem?
  • Will the community benefit from your organization?
  • What technical and programming resources will you need to get the organization running?
  • What vision do you have in your mind when you think about your DAO?
  • Are you ready for all the challenges the crypto market brings?
  1. Second, choose your DAO type.

Once you’re past the choice of structure, it’s time to choose the type of your DAO.  We have several of them:

  • DAO in the form of a protocol. That is the most common form of organization. It focuses on management through decentralized protocols. The most well-known DAO protocols include MakerDAO, Uniswap and Yearn Finance.
  • Investment type. Here the name is very suggestive. In this kind of DAO, investors come together to support new projects that emerge in the market.
  • The Next Type of DAO: Grant DAOs. These are very similar to investment DAOs as their purpose is to support new projects and ideas. So, what’s the difference? Grant DAOs are specifically designed for DeFi projects.
  • Social DAOs, organizations that support social media and other social networks within the cryptocurrency community. An example of such a DAO is Blockster.
  • Collectible DAOs, linked with NFTs. An example of this type of DAO is PleasrDAO.
  • DAOs designed for entertainment. As the name suggests, they provide decentralized entertainment. This type allows developers to implement their ideas while maintaining full decentralization. Flufworld is a very popular entertainment DAO.
  • And finally, philanthropic DAOs. They are very rare. They are designed to support projects that operate in the Web3 world. An example of this type of decentralized organization would be the BigGreen DAO.
  1. You have to decide on the token!

Supply, allocation, incentives, rewards – these are all things you need to consider. This stage will allow you to effectively raise funds, as well as gain support from your DAO’s supporters and community. Why do you need tokens in your organization? Well:

  • They are an indispensable element, for granting rewards or other benefits to the entire community.
  • They help vote and manage the organization.
  • SThey are a great way to develop communities.
  1. Create your DAO!

A DAO is not a startup, so you will find many templates and tools on the market to help you create your organization. Here are the most popular blockchain tools for building a DAO: Aragon, Colony, Syndicate, OpenLaw, DAOstack, Orca Protocol.

After creating a DAO, you need to go to the treasury. It is important if we are talking about effective token handling or crowdfunding.

  1. Treasury!

The supply and allocation of the token is complete. Now you need to secure it and all the funds you received in the ICO, for example. For this we need a treasury. Popular DAO Treasury tools include:

  • Gnosis Safe,
  • Multis,
  • Juicebox,
  • LIama,
  • Parcel,
  • Utopia,
  • Commonwealth,
  • Paladin,
  • Snapshot,
  • Sybil,
  • Boardroom.
  1. Community

In essence – the most important factor of a DAO. An engaged, supportive and trustworthy community is the basic and strongest pillar of the entire ecosystem of a decentralized autonomous organization. An engaged community will help expand the project.

Summary

The whole process of creating a decentralized autonomous organization (DAO) is not that complicated. The important thing is that you have your DAO structure and vision in your head. All the while, with the development of decentralization, DAO innovation will increase.

DAOs are great when it comes to decision-making, voting and their decentralized nature.  Many believe that they are the catalyst for the future growth and widespread adoption of blockchain technology and cryptocurrencies.

Complete today’s lesson!

What is blockchain and how does it work? [BEGINNER LEVEL]

Smart contracts – what are they? [BEGINNER LEVEL]

Basic differences between ICO/IEO and STO. [BEGINNER LEVEL]

What are decentralized DAOs and how do they work? [BEGINNER LEVEL]