List of DAOs

What Are the Best DAO Coins and  Projects?

DAO (decentralized autonomous organization) is a type of company or organization that  works through smart contract technology. In other terms, DAO is a type of application that runs on top of the existing blockchain network. In fact, any group, project or crypto company that follows rules of such organizations can be qualified as DAO. DAOs are especially relevant in the DeFi sector. The first DAOs appeared in 2013. However, at that time they had little in common with the current popular DAOs. Later, the concept of decentralized, transparent and anonymous management of the organization started to be implemented.

How Do the Top DAOs Work? 

Decentralized autonomous organizations do not have directors, a board of shareholders, or full-time workers. Global companies and corporations have a vertical structure. The “top” solves important issues, the “subordinates'' execute them. In DAO, developers lay the foundations of the project in smart contracts and put them forward for consideration by the first members of the community. If the participants agree with them, smart contracts are launched. 

After that, management completely passes into the hands of the community, and the creators become only executors of ideas. Since smart contracts cannot be changed after launch, the development of the platform proceeds strictly according to the scenarios embedded in them. Any changes, be it technical upgrades or the allocation of money from the budget, are only possible through a general vote. Each user who has tokens of this organization has the right to participate in decision-making and company management.

Typically, such decentralized organizations have a fund in which the assets are blocked. Users vote for the implementation of certain ideas within the project. Voting  takes place through special governance tokens. When a DAO member comes up with an idea, they create a proposal and put it forward for the community to consider. Participants can vote for or against a proposal using tokens. The more tokens, the more weighty the vote. If approved, the proposal becomes a task for the developers.

Governance tokens are essentially cryptocurrencies as, for example, any other ERC-20 standard tokens. Most of them are traded on cryptocurrency exchanges and may have other uses outside of the DAO crypto list. Each DAO strives to ensure that the participants are always interested in the development and maintenance of the project. This is done through different types of rewards.

Many top DAOs offer increased staking rates for their native tokens, exclusive NFT token drops, liquidity provider rewards, and other rewards for active community members. Thus, the project participants have the motivation to constantly stay in its ecosystem, buy and hold as many management tokens as possible, and keep the project afloat in every possible way.

DAOs are only superficially similar to the traditional structures. The latter are hierarchical, DAO embodies the equality of participants. Each vote is equivalent to the rest. In the real world, line managers and directors  can single-handedly make and implement their decisions. In the DAO, a universal review of each upcoming action is mandatory, as well as a vote for the final decision. In the offline world, the most important decisions are usually voted by the board of directors and other elected groups. In DAO, this is simply not possible.

Another key difference is openness and transparency. “Ordinary” organizations are built on privacy, DAOs are 100% transparent. Like any data on the blockchain, all information about finances, statistics, smart contracts and other aspects of the DAO can be viewed by anyone at any time. Other key factors are automation and saving resources. Like blockchain networks themselves, DAOs are designed to save money and resources. Most management processes in the real world require a lot of man-hours and are not always efficient. DAOs, on the other hand, try to automate everything possible, leaving users as much time as possible for effective interaction and decision making.

What Are the Best DAOs to Invest in?

Many of the largest blockchains, DeFi and GameFi platforms work through the DAO model. The list of DAOs include:

The best DAOs to invest in: dYdX (DYDX token), Curve Finance (CRV token), UniSwap (UNI token), PancakeSwap (CAKE token), Sushiswap (SUSHI token), 1inch (1INCH token), and others.

NFT digital art marketplaces: SuperRare (RARE token), Mintable (through special managerial NFT tokens) and others.

Blockchain games and metaverses: Axie Infinity (AXS token), Decentraland (MANA token), The Sandbox (SAND token), and the Alien Worlds game, which consists of several DAOs (managed by the TLM token).

Other protocols: MakerDAO, DAI stablecoin issuing platform, managed through the MKR token. The AAVE staking protocol is also managed according to the DAO model via the token of the same name.

Conclusion 

In this article, we have only scratched the surface of the concept and structure of DAO and the best DAO coins . The world of decentralized organizations is already quite vast and has long been living by its own laws. Like blockchain networks themselves, DAOs offer more efficient alternatives to a number of offline processes. There is a reason to believe that with the further development of the blockchain environment, the DAO model will also become more widespread in the real world.