Ethereum-DAO

A DAO is a collectively owned, blockchain-governed organization dedicated to a common mission. DAOs allow us to collaborate with like-minded people around the globe without trusting benevolent leaders to manage money or operations. There are no CEOs who can spend as they please, and no CFOs who can manipulate the books. Instead, blockchain-based rules embedded in the code define how the organization operates and how funds are spent. They have built-in vaults that no one has access to without the approval of the group. Decisions are made by proposals and votes to ensure everyone in the organization has a voice and everything happens. DAO governance There are many factors to consider when governing a DAO, such as how voting and proposals work. Multi-signature governance While a DAO may have thousands of voting members, funds can be held in wallets shared by 5-20 active community members who are trusted and often doxxed (public identities known to the community). After voting, the multi-signer executes the will of the community. DAO law In 1977, Wyoming created the LLC to protect entrepreneurs and limit their liability. Most recently, they pioneered the DAO Act, which establishes legal status for DAOs. Wyoming, Vermont, and the Virgin Islands currently have some form of DAO law.