Members of a decentralised autonomous organisation (DAO) use smart contracts and can purchase a governance token to be a DAO member.
New systems like DAOs are emerging as Web3 and the blockchain become more widespread. DAOs are systems where a group of people come together in a “completely flat hierarchy” and the organisation doesn’t have a central leader or company calling the shots.
However, DAOs are being adopted by many companies, blockchains and crypto enthusiasts making the term more descriptive. DAO members are spread worldwide and connect using Discord channels. Jason Yanowitz, co-founder, Blockworks, describes DAOs as “a way to govern people differently around a shared balance sheet.”
Given that DAOs have high spending power, marketers and media companies can pitch advertising opportunities to the collective. Further, DAOs and Web3 offer the ability to build community, notes Amanda Cassatt, CEO and co-founder of Serotonin.
[4 minute read]