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DAOs operate using smart contracts, contracts built on the blockchain with predetermined criteria agreed on by both parties. Once the requirements are met, the contract will execute.
Just like paper contracts control corporations, smart contracts control DAOs. Token holders in the DAO can influence future operations or governance protocols based on majority rule.
A DAO allows regular people to participate in potentially world-changing decisions. DAOs are built on open-source blockchains to improve transparency, meaning anyone can view the underlying code. Blockchain technology also keeps all financial records so anyone can audit a DAO’s treasury.
In this article, we’ve compiled a list of some of the most exciting projects. Some are no longer active but played a significant role in making DAOs what they are today. Others are paving the road for more widespread adoption and funding change in global issues.
3. Friends With Benefits DAO
Friends With Benefits DAO is an exciting project for people looking to develop relationships with like-minded decentralized enthusiasts. Friends With Benefits is a worldwide community of Web3 creators, thinkers, and builders who converse digitally and in real life.
Instead of attracting investors with excess capital, FWB is more focused on cultivating a community of digital workers who can contribute time and energy. Users can enjoy online or in-person meetups with other token holders. Currently, owning 5 FWB tokens gets you access to their cities initiative, creating FWB hubs in New York, Los Angeles, and London.
5. ConstitutionDAO
ConstitutionDAO started with the goal of buying a rare copy of the US Constitution.
Unfortunately, the DAO never succeeded in purchasing it. However, they did succeed in taking DAOs to the masses. They revealed the community’s true power and the speed at which DAOs can raise money for a cause after raising $42 million in 7 days.
CostitutionDAO was many people’s introduction to DAOs, and the project educated thousands about the Web3 space. Since then, ConstitutionDAO has inspired many other projects, such as Krause House, attempting to buy an NBA franchise.
7. EarthFund DAO
EarthFund DAO came about to tackle climate change. They operate by pooling money and voting on what projects get the funding. Currently, they have $2.4 million under management with three proposals. Some of their causes are mental health and carbon removal.
Unlike many other DAOs, EarthFund offers a financial incentive to participate in the community. They measure your impact and then redistribute funds to reward your hard work. It’s worth mentioning that there are a few other DAOs focused on climate change, such as KlimaDAO and ClimateDAO.
8. UkraineDAO
UkraineDAO is a DAO focused on raising money for Ukraine during the armed conflict with Russia. They have raised over $7 million and distributed it to the Ukrainian government, people, and army. This is one of the first successful applications of DAOs supporting war relief and evacuation efforts.
They held an auction for an NFT of the Ukrainian flag, which sold for $6.75 million. They continue to support Ukraine by attempting to arm them with vehicles and supplies.
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Analysis – “I am less interested in the economics of crypto and more interested in all of these interesting use cases for blockchain technology and the fun things people are doing with it. In this article are examples of alternative uses for what are called DAOs. A DAO (Decentralized Autonomous Organization) is basically an organization that is 100% democratic. They are all written with different rules (smart contracts), but they are also completely transparent (you can see the code/”rules”). Investors and buyers of the DAO will be able to participate and make votes according to their rules.
Ultimately, it is a fascinating way to see what people will do when they can put their money together towards a shared interest and create.” – Easton Nguyen
