What a DAO is

Last updated last month

(still under construction)

Johann Barbie, Parseclabs.org

The obvious difference between a decentralized organization (DO) and a decentrazlied autonomous organization (DAO), and the one inherent in the language, is the word “autonomous”; that is, in a DO the humans are the ones making the decisions, and a DAO is something that, in some fashion, makes decisions for itself.

What DAO is and what DAO is not

In order to be a DAO, system:

  • D - Should be politically AND architecturally decentralized;

  • A - Should make some decisions automatically AND should not obey rules of the system located on the same or higher level;

  • O - Should be comprised of multiple actors with clear governance rules, incentives and internal capital.

Decentralized

Autonomous

Clear governance rules and incentives

Internal capital

DAO?

McDonald's

-

+

+

+

No

TheDAO

+

+

+

+

Yes

2-of-3 multisig wallet

+

+

+

+

Yes

Bitcoin, BTC (system)

+

+

+

+

Yes

Any Ethereum DApp or a smart contract

-

+

-

-

No

TokenCuratedRegistry (system)

+

+

+

+

Yes

Bittorrent

(system)

+

+

-

-

No

Resume

DAO often consists of:

  1. Assets/property: internal currency, tokens, etc;

  2. Actors: curators, moderators, token holders, robots, smart contracts, etc;

  3. Rules of governance/protocol: permissions, business logic, etc.