🌐What is DAO?

A decentralized autonomous organization (DAO) is a decentralized entity with no central government. Decisions are made bottom-up, governed by a community organized around a specific set of rules enforced on a blockchain.

DAOs are internet-native organizations collectively owned and managed by their members. They have built-in treasuries that can only be utilized with the approval of their members. Decisions are made via proposals, of which the group votes on during a specified period. This system would allow harnessing of the community hivemind for process development and idea generation, and reduce human error or manipulation of funds.

A DAO works without hierarchical management and can have a large number of purposes. DAOs can be used for multiple purposes such as investments, borrowing, lending, fundraising, payments, all without any intermediaries.

To be fully operational, a DAO needs a set of rules according to which it will operate. Those rules are encoded in a smart contract, which permits trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a central authority, legal system, or external enforcement mechanism. At its early stage, Community DAO still would require central management and execution, but as the protocol approaches maturity and stability, the final vision would be for an autonomous organization led by the community. In this early stage, Community DAO plans to have an executive team of experienced, capable individuals helming the project, while taking the communal input of its community for direction of the project.

When a DAO is fully operational, the decisions on how the protocol develops and how the treasury is used are made via an autonomous crowdsourced approach.. DAO stakeholders can write proposals regarding implementations and stakeholders would then vote on the proposal. For a proposal to be passed, the majority of stakeholders needs to vote in favor of it.

Currently, DeFi 2.0 projects backed by a DAO-governed treasury of unique DeFi assets has a market share at around 1% of the entire DeFi market capitalization. As we expect both the DAO and DeFi dominance in the crypto space to grow tremendously in the near future, there is a sizable addressable market for Community DAO to capture market share.

The current DeFi 2.0 DAO projects have been plagued with problems, such as the underlying assets losing value due to poor treasury management, or ‘rug pulls’ initiated by anonymous founders and developers. Community DAO aims the next step towards DeFi 3.0, achieving both asset-backed stability and purchasing power through Establishing True Credibility, Strong On-chain Governance and Active Risk Management for our stakeholders.