List of All Decentralized Autonomous Organization (DAO) Coins and Cryptocurrencies
September 2023

What are DAO coins?

DAO is short for Decentralized Autonomous Organization. DAOs are created in a smart contract form on a blockchain and run by a group of developers in a pre-determined way of governance. DAOs are not controlled by a single entity or institution. DAOs are controlled by networks, nodes, stakeholders, and contributors by their shares. Decisions are made by different parties' participation. Having decentralized autonomous governance make DAOs less vulnerable to human errors and manipulative venture capitalists.

First DAO was created in 2016 on Ethereum Blockchain and faced severe hacking which caused 3.6 million Ether to be stolen. Since then many other DAOs are created and many of them are working with no issue. There are independent audit firms and new DAO projects prefer to be audited against any mistake in their smart contract.

The biggest DAO examples are Uniswap, AAVE, Maker, and Sushiswap. Those platforms are decentralized and run on a blockchain. They are good examples of decentralized finance applications on the blockchain. People can buy, sell, trade, exchange, or stake their cryptocurrencies on those platforms. The platforms make money by receiving commissions between transactions. And the profit is shared among the platform’s native coin holders. Token holders can join the governance with their holdings. The more native token you hold, the bigger share you can receive.

There are different types of DAOs serving different purposes such as protocol DAOs, service DAOs, and Investment DAOs. DAOs are created and run by communities and decisions are made by the community. Some DAOs act like investment funds and fund new blockchain projects in the early stages. The community decides which projects to be funded. Voting rights are shared among the community members depending on their holdings.

DAOs allow shareholders to have a vote and the right to have a say about important decisions for the application’s future. DAOs are similar to publicly traded companies in a more democratized way. While publicly traded companies hold annual meetings to discuss the company’s performance and assign new chairmen to delegate on behalf of the shareholders, DAOs allow shareholders to directly participate in governance. Shareholders don’t need to delegate their voting rights to another one. There is no board of directors or executives.

If you hold Sushi tokens, you can participate in the governance of the SushiSwap platform. The sushi swap app makes a profit by receiving commissions from transactions and trades on the app. The revenue is distributed among the community members. DAOs are public and open source that is transparent with their operations. If there is a proposal to make some upgrades or updates to the system, it will be asked to community members who hold Sushi tokens. The voting is public and anyone can see the votes.

The services provided by the application are fully automated. There is no need for human intervention. Human intervention is needed only for governance. Since the application is built on a blockchain and decentralized. Governance is also ineffective in making changes to how the app is going to work. Essentials can not be changed. Because smart contracts play an essential role in DAOs. Since smart contracts are immutable, irreversible, and verifiable with their underlying blockchain technology, the application will keep working in the same standards forever.

With all new innovative solutions, DAOs are a new concept of doing business with strangers on the internet. It is a safe foundation to invest funds for a specific purpose. Since it is fully public in a decentralized way, you can trust the system and work with people you met online. Blockchains security provides a safe way to create an online business without trust issues.