DAO, resources on how to create an alternative economic system

Decentralized Autonomous Organizations (DAOs) are a form of digital decentralized social organisation, whose management and operational rules are codified in a smart contract and inserted into a blockchain.

That contract can be exchanged in the form of “tokens” (small shares), so every time an exchange takes place, the transaction itself confirms the veracity of the contract itself.
Transactions, which are public, are a proof of “that kind of Trust” has taken place and therefore all transactions are an asset.

Operating rules are commonly illustrated in a Whitepaper, a sort of prospectus in which the DAO and its goals are described in detail.

Thanks to this mechanism, anyone, anywhere in the world can invest, participate and trade DAOs.

For create a Decentralized Autonomous Organization (DAO) you need several things, including:

1. A blockchain or a technology platform that supports the creation of smart contracts (e.g. “Ethereum”)
2. A smart contract that defines the rules and procedures of the DAO
3. A Whitepaper, a clear roadmap for the functioning and decisions of the DAO
4. A token or cryptocurrency for governance and for financing of the DAO (e.g. an ERC20 Token)
5. A community of people willing to participate and contribute to decisions related to the DAO
6. Robust cybersecurity to protect DAO funds and data
7. A system for managing community votes and decisions, such as weighted voting or majority voting
8. A team of technicians, developers and administrators dedicated to managing and updating the DAO over time, also through the various portals and connected social channels

The cost to create a DAO can change depending on the complexity of the project, the number of members involved and the technology used.

In general, expenses for create a DAO can include:

• Legal costs
  You may need to consult a blockchain and cryptocurrency attorney to ensure legal compliance of your DAO and the creation of an appropriate smart contract.
  Costs may increase in case of International Law
• Development costs
  If you decide to create a customized DAO, it is necessary to involve developers who are experts in blockchain, in order to create the smart contract and the application thanks to which the DAO can circulate.
• Security costs
  It’s important to ensure the security of the DAO, to protect member funds and data.
  You may need to invest in security audits and implement data protection measures.
• Operating costs
  Once the DAO has been created, there are maintenance and management costs, such as the development and implementation of servers and web domains, costs related to sponsorships in social networks and search engines, even if you want attract new members and investors.

Overall, the costs to create a profitable DAO could range from a few thousand to several tens of thousands of dollars, depending on the specific needs of the project. It is important to balance the initial costs with the potential return on investment to ensure that the DAO is sustainable and profitable in the long term.

Almost all kind of decentralized organizations can already create and base their macro-economy on DAO today.

Some example categories:

• Mutual assistance groups
  

  Groups of people who come together to share resources and mutual support, creating a network of solidarity and mutual help.

• Intentional communities
  

  Groups of people who choose to live together intentionally, sharing resources, decisions and responsibilities.

• Local exchange networks
  

  Exchange systems in which people exchange goods and services with each other without the use of money, only by promoting sharing and collaboration.

• Transition town

  Communities that are committed to becoming more sustainable, resilient and autonomous, promoting ecological, local and supportive practices.

• Social justice movements
  

  Organizations and groups working to promote social justice, equality and human rights, through awareness-raising, mobilization and political change.

Below are some acknowledgments on the DAO phenomenon in different countries area.

For detailed information we also recommend consulting the Pontinova Global Top 100 DAO Legal Report