What's A DAO By Technicalities?

We will be covering the meaning of a DAO, what does a DAO mean to us and what we mean by "DAO by technicalities"

What's A DAO?

A decentralized autonomous organization (DAO) is a form of legal community structure. With no central governing body, every member within a DAO typically shares a common goal and attempt to act in the best interest of the entity.

How DAOs Work?

DAOs rely heavily on smart contracts community. These logical coded agreements dictate decision-making based on underlying activity within the community on a blockchain. For example, based on the outcome of a decision, we may be implemented to increase the circulating supply of NFTs, burn of a select amount of NFTs, or issue select NFTs to existing holders.

The voting process for DAOs is posted on a blockchain Discord. Users must often select between mutually-exclusive options. Voting power is often distributed across users based on the number of NFTs they hold. For example, one user that owns 10 Space Terminators NFTS will have twice the weight of voting power over a user that owns 5 Space Terminators NFTS .

The theory behind this practice is hodlers who are more monetarily invested in the DAO are incentivized to act in good faith. Imagine a hodler who owns 25% overall voting power. This user can participate in bad acts; however, by doing so, the user will jeopardize the value of their 25% holding.

Benefits of DAOs

There are several reasons why an entity or collective group of individuals may want to pursue a DAO structure. Some of the benefits of this form of management include:

• Participation. Individuals within an entity may feel more empowered and connected to the entity when they have a direct say and voting power on all matters. These individuals may not have strong voting power, but a DAO encourages NFT hodlers to cast votes, burn tokens, or use their NFTs in ways they think is best for the entity.

• Community. The concept of a DAO encourages people from all over the world to seamlessly come together to build a single vision. With just an internet connection, NFT hodlers can interact with other owners wherever they may live.

By technicalities and with the following information above, we consider ourselves a "DAO". Read more in the next page DAO-like Structure...