What is the role of a decentralized autonomous organization in Web3?

A DAO gives its community members voting rights and allows investors to send, receive and store value globally, automatically and anonymously.

For years, automated systems were seen as a way to reduce pesky hurdles for people, such as dealing with lengthy and cumbersome traditional bureaucratic systems. The primary purpose of a DAO is to solve such problems and encourage people to focus on better productivity and other more rewarding aspects of an organization.

A DAO’s automated system does not require traditional central management, which is more vulnerable to failure, human error and manipulation.

What can a DAO do in terms of real world applications?

Due to the lack of hierarchical management, the organization can have various applications at its disposal. In addition to the typical crowdfunding function that replaces venture capital firms, a DAO can be useful to incentivize and reward independent freelance professionals with proposed funds raised throughout the organization. Charities can have their donated funds approved and secured through a DAO.

Another function that has recently expanded is to create a DAO as a network of digital assets in the chain. For example, land represented by NFTs may be collectively owned by the DAO or by individuals.

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