What is a DAO?

A DAO is like a company, coop, club, or task force. The secret that sets DAOs apart from these examples is all in the name.

Decentralization is a core concept of blockchains. Astro DAOs operate on NEAR blockchain, enabling peer to peer transactions without borders or gate keepers. You can collaborate with whoever you want from around the world!

Autonomous Organization is a tricker concept tied up in a new work revolution. Companies and platforms typically have someone in the middle to handle logistics (and taking a cut for their effort). Astro DAOs replace those positions with apps running on the NEAR blockchain to automate things like distributing funds, recording consensus, and managing membership. All of that saved effort and cost is then passed onto the members of the DAOs, paying them more for the value they contribute!

To make things tangible let’s look at an example like AirBNB. If people with open space for short term rental coordinate directly with each other through a DAO then they don’t have to give a cut of their profits to AirBNB for providing that organizational service. Record labels, foundations, setting up group buys, crowdfunding, and more are all more efficient as DAOs!

DAOs are digital companies living on a blockchain with participants united by a common purpose. The more focused the purpose, the easier it is for members to understand what they are contributing to.

Since DAOs are a new concept it's good to remember that there isn't one right way to DAO.