What is DAO in Crypto & How
work?
One of the biggest advantages of cryptocurrencies is that they are decentralized.
This means that there is no central institution such as banks or the government that can control this industry. Also, all transactions rely on blockchain technology which is available for all to see.
Thanks to decentralization, crypto enthusiasts enjoy security and privacy, which are not available when transacting fiat currencies like USD, INR, EUR or others.
Inspired by this idea, a group of technology developers proposed establishing a DAO. A DAO is an entity without a central leadership.
To help you find out more, here are the details:

What are DAOs?
DAO stands for Autonomous Organization
Decentralized. DAOs are essentially community-led entities with no central authority.
DAOs are fully autonomous and transparent.
Because it is backed by smart contracts, which lay the ground rules. It is also executed depending on the decision, and at any point, proposals, votes, and even the code itself can be publicly audited.
Crypto expert Sudhir Khatwani, who writes at
TheMoneyMongers.com, explains "the main idea behind the DAO is to be governed by individual members who can collectively make important decisions about the future of the project." He further added, "For example, treasury allocation, technical improvement, and so on."
In a DAO, communities can make their own proposals on future protocols and members come together to vote on each proposal.

every proposal.
The proposal that gets the highest number of votes will be accepted and enforced by the rules set out in the smart contract.
Overall, the main idea behind DAO is to give community members the ability to decide the future path of the project. Decisions made by community members will decide how the company will use its funds and resources.
Also, thanks to the transparent nature of the DAO, details are accessible with the consent of its members.
How does DA0 work?
DAO rules set by a core team of community members using smart contracts.
These smart contracts are responsible for laying out the basic framework on which the DAO will operate.
These smart contracts are highly visible, viewable and publicly auditable.
So every member can understand how the protocol works in every step. This makes the DAO transparent

Once the rules are established and officially written into the blockchain. The next step is funding. DAOs need to understand how to receive funds and how to establish community member governance.
This is achieved by issuing tokens to community members. The protocol sells its tokens to raise funds and replenish the DAO treasury.
Also, individuals get certain voting rights by purchasing DAO tokens. These voting rights are usually proportional to their holdings.
Once funding is complete, the DAO is ready to deploy. Once the code goes into the production phase, the DAO can no longer be changed. However, it can only be changed when there is a vote made by the community members.
No special authority has the power to change the rules of the DAO.
Instead, it is entirely up to token holders or community members to decide how the DAO's future roadmap will look.

SAVE
How to get involved?
As mentioned earlier, you can get involved in a project by buying its tokens. So whenever you come across a project that really interests you, then you can obviously buy their tokens.
But there are other ways to get involved in a DAO. However, as an investor, you need to understand the core functions of each DAO.
Because all DAOs operate with different purposes.
Since DAO focuses on community-led governance, you need to find out what kind of voting rights you get as a token holder and what proposals are at stake.
For example, Uniswap token holders may choose to distribute a portion of the fees collected by the protocol among themselves.
In other protocols such as Compound, token holders can choose to distribute the fees of this protocol for bug fixes and system upgrades.

However, the question is, how
You know about the newer DAO project? Well, you can join a different DA0 discord server where
You will find out about the actual project and how you can get involved in it.
So Why DA0?
So far, I hope you've understood how DAOs work, and thanks to their public and easy verification protocols, trust is built into DAOs and the voting process.
All services in DAO are automated and decentralized. Consequently, it cannot be changed by a higher authority. Therefore,
DAOs have great potential in the charitable and contractor communities.
However, on the other hand, smart contracts may not have enforcement. Besides that,
DAOs themselves may not own assets because certain individuals or entities do so.
Smart contract setups can alleviate some of the problems associated with traditional contracts. But overall, DAo is very useful in terms of implications for blockchain-based gaming and eSports.

Gamers and developers can collaborate as DAO facilitates community communication and gathering through NFT and cryptocurrency payments.
Benefits of DAO
As of now, DAO crypto tokens are being widely used for purposes such as investing, charity, purchasing and creation
NFT, fundraising and more.
For example, a Decentralized DAO includes
A decentralized urban planning committee in the metaverse where they decide content moderation, LAND policy, and auctions.
Also, there are several benefits of using
DAOs in the real world. As:
Decentralized, Automated and Transparent:
One of the main benefits of a DAO is that it is decentralized and transparent.
As a result, the members get full ownership to maintain the protocol.
Also, DA0 is automatic because it is supported by
Smart contract. Therefore, all decisions taken by the members
The community is automatically executed. Unlike traditional companies, there is no <third party that can manipulate operations
company

Also, DAO eliminates all third-party transaction fees, and organizations only "pay" for those on the blockchain.
As a result, they can enjoy profit margins.
Community Based:
In a DAO, token holders get the power to make decisions. This power is proportional to the token held by a member. But it doesn't give members more rights or privileges.
Token holders have the right to make changes that further develop the protocol. It democratizes the protocol.
Potential Return on Investment:
Owning governance tokens in a DAO is almost the same as holding equity in an early stage startup. If the project becomes successful at a later stage, your equity becomes very valuable and brings you huge profits.
So as a DAO member, you are rewarded with a fixed percentage of the transaction volume on the exchange.

As a result, it creates a stable token user base that has a long-term investment mentality. Also, thanks to its reward mechanism, DAO projects differentiate them from other non-DAO projects.