What Is a Decentralized Autonomous Organization?


A key topic of discussion within the cryptocurrency space is the ultimate implications of cryptocurrency and the underlying blockchain technology. One of the first transformational possibilities shared among the community was the idea of the Decentralized Autonomous Organization (DAO).  What Is a DAO? A Decentralized Autonomous Organization represents an environment that handles some function or output in a manner that is entirely self-governing, self-sustaining, and self-fulfilling. The term was first coined in 2013 by Daniel Larimer, creator of BitShares, perhaps the first working example of a DAO. The famous early example was given by former Bitcoin contributor Mike Hearn, who described a future DAO as an autonomous vehicle that seeks out and picks up a passenger, drops them off at their destination, and uses the Bitcoin received from the passenger to recharge at an electricity station, before finding its next passenger. To put it more broadly, a DAO can represent any form of production or protocol in which the mechanisms for its purpose are carried out automatically, through the use of algorithms and machinery, made possible through an integration of blockchain technology. In contrast to real-world methods of production, a DAO looks like a business in which the job of manager/CEO is replaced completely with an automatic process, and business decisions are left entirely up to the token-holding participants who make up the ecosystem within and around the business. Current Instances Perhaps the most widely known Decentralized Autonomous Organization is The DAO, a failed autonomous investment fund launched on the…
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