How to pick a DAO legal entity - a16z crypto

One mechanism to coalesce a nexus of smart contracts is a Decentralized Autonomous Organization (DAO). You can think of it like a shared treasury among the members, with hard coded rules that govern how funds can be disbursed. DAOs can be used for any number of collective pursuits, much like an LLC can be formed to pool resources for any number of ... See more

Various types of DAOs have emerged to serve different use-cases. As interest in the space has increased, DAOs have begun to diversify and experiment with the boundaries of what’s possible. There are DAOs for investing, DAOs for building new products, DAOs for socializing, and many iterations both between and beyond.

When DAOs are needed The growth of DAOs in general and the massive success of some of the most innovative ones inevitably result in the perception that the route to growth and robust network participation requires a DAO structure. In times of ebullience, market forces make it easy to assume that every organization, community, or project needs a DAO... See more

Since DAOs are blockchain-based organizations that usually are not tied to a corporate entity, they leave a lot of room for rapid experimentation in organization and incentive design. Members can collectively source an idea, funnel collectively managed resources toward shared goals, iterate, and ship with rapid speed.

More simply, DAOs are a new way to finance projects, govern communities, and share value. Instead of a top-down hierarchical structure, they use Web3 technology and rapidly evolving governance and incentive systems to distribute decision-making authority and financial rewards. Typically, they do that by issuing tokens based on participation, contri... See more