How DAO Works

in blockchain •  2 years ago 

We are switching to DAO right now, and this is a perfect time to talk about what DAO is and how it works.

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Decentralized Autonomous Organizations (DAOs) are like a parliament or board of directors, but for decentralized crypto organizations and projects. It operates on a blockchain network, following rules and regulations encoded in smart contracts. This means no product management interference is necessary. Members of the DAO participate in decision-making and voting through tokens. The community members have voting power proportionate to the number of tokens they hold.

DAO Explained

A DAO's decision-making process is like a digital version of a town hall meeting. Members of the organization use their tokens to vote on different proposals or projects. The smart contract then executes the decision automatically. For example, if the members vote to allocate funds for a new project, the smart contract will release the funds to the designated wallet without any human intervention.

One of the coolest things about a DAO is that it's decentralized, which means no single entity controls it (including the one that created it). All the members have equal voting rights and participate in the decision-making process, making the organization more democratic and fair. It's also borderless, meaning that any DAO tokens holder from anywhere can join and participate in the project development.

Another significant benefit is its versatility. They provide an efficient and transparent way of managing projects and allocating resources. DAOs are flexible and can be used in many industries, including finance, healthcare, and governance. But, of course, they are most often used by crypto projects like The Key.

The Key DAO

Right now, The Key is switching to DAO mechanics. Many key decisions will be made by the community (by you). The more your package level is, the more powerful your votes are.

  • PREMIUM package — 1 governance token
  • PREMIUM+ package — 4 governance tokens
  • VIP package — 7 governance tokens
  • VIP+ package — 17 governance tokens

Purchase a package to get The Key DAO tokens and other benefits, including crypto education access, marketing program access, DSS and staking opportunities!

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