The concept of (Decentralized Autonomous Organization) has been known since 2013, when the co-founder of EOS, Dan Larimer, first mentioned the term. Currently has become one of the most innovative concepts. The main philosophy of is to create an organization without the centralized control. DAO DAO Blockchain-based DAO Simply is a smart contract, where all rules are written in the source code instead of the piece of paper. All decisions in are made in a completely democratic manner by the vote of its shareholders according to the previously established rules. These rules are adopted by all participants, at the moment of creation. In other words, does not have top-down hierarchy, there is no centralized power. DAO DAO DAO DAO As said above, works by using smart contacts (encoded rules) to automate all its essential and non-essential processes. The core idea of smart contracts is that they are , and — once recorded it could not be changed. DAO open transparent immutable All operations within — transactions, offers, and voting (including results) — are stored in an open register. uses native tokens that can be distributed between shareholders and be used to vote to make a particular decision, tokens give several rights and privileges within the environment, one of these privileges is to have the right to vote on certain matters. DAO blockchain DAO Unlike traditional businesses with hierarchical (top-dawn) structure provides an operating system for people and institutions that do not know each other, who might live in different countries and are subjects of different jurisdictions. Instead of legal contracts in , all agreements are in the form of open-source code that is implemented by majority consensus of all shareholders. Once is deployed it is totally independent from its creator and can not be powered by a single individual. DAO DAO DAO The creator of , said: . Not everyone probably agrees with this potential change, but there is no doubt that a is a business model of the future. Ethereum Vitalik Buterin “There are a lot of intermediaries that end up charging 20–30%, if the concept of decentralization takes off and does well, those fees are going to decline to almost zero” DAO

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