Ethereum's Forgotten Treasure: DAOs

DAOs, the formal and informal arrangements keeping organizations afloat are replaced by smart contracts.

As a result, hierarchical decision-making powers traditionally held by CEOs or hiring managers may be redistributed among all members of a DAO. Smart contracts incentivize participation in these management and governance duties since the contract won't be triggered without participation.

Lessons of the Original DAO. A DAO has been previously implemented on the Ethereum network.

The Original DAO was a venture capital fund meant to support new blockchain enterprises but had no office space or investment team.

The Original DAO frightened many away with its concept, but eventually, it was apparent the Original DAO's failure was specific to the Original DAO, not to the concept itself.

DAOs suffered from coding and security errors before and after it went live.

These were fatal but instructive flaws and DAO developers understand that DAOs require a more secure design and meticulous code audits.

The blockchain world's first experience with DAOs was rough but is now making a comeback as developers learn from the Original DAO and work on more sophisticated and secure structures.

The impending launch of DAOstack, a tool suite for building DAOs using modular governance modules, is a step towards DAO adoption.

Developers and builders can use DAOstack to build DAOs with the option to only use governance modules vetted by the DAOstack community for functionality and security.