Experiments paved the way for modern DAOs Early DAOs were collective investment vehicles designed to function like decentralized venture funds. Tokens represented voting rights and economic interests in the DAO. Every participant was rewarded on Ethereum for their contribution regardless of their contribution. DAO winter coincided with the bear... See more

Leaders with differing ideas naturally surface in groups of people, and it is equally natural for people to follow leaders and causes they believe in. Rather than replacing hierarchies, DAOs create a mechanism through which a single organisation can allow many hierarchical teams to explore different directions simultaneously.

3. Difficulty aligning on culture and values, and disseminating them throughout the DAO