DAO 101—All you need to know about DAOs

The revolutionary technology that makes DAOs so forward-thinking is that these functions are digitized and on the blockchain so that everyone in the community sees what decisions were made in one central source of truth, the public ledger.

Of course, it’s not all fun and games, either — DAOs, after all, are not just an abstract crypto concept, but systems of people. And while they create new models for human coordination around shared principles or goals, they also present new challenges for effective governance, day-to-day execution, and scaling.

 Perhaps the greatest threat to DAOs today is uncertainty. Without clear legal status, DAOs cannot take advantage of the same protections as corporations, such as legal personhood, limited liability and simplified tax arrangements.