DAOs and Web3 Just Got Their Killer App — DAODOA, a DAO of all DAOs

  1. A few da Vinci fans would gather together and come up with the original idea to raise funding in order to create this museum.
  2. They would decide to mint (create) 1 million digital tokens each representing a 1/1millionth share of the DAO.
  3. They would then decide that they want to raise $1 million for the project, thus selling the tokens for $1 a piece.
  4. Some people would decide to buy just 1 token, while others would decide to buy more. Maybe some “whales” would purchase $50,000 worth (50,000 tokens — 5% of the DAO).
  5. Once the funding is raised, each coin equals 1 vote in any decision the DAO decides to make. For example, they may want to decide on the size of the museum, so they would come up with different options and poll the DAO members to determine the size that the majority of the tokens held desire. Someone with 50,000 tokens would count 50,000 times more in the voting process than someone with just 1 token.
  6. Voting would be used to make all important decisions for the DAO and the DAO’s museum project. They could even elect to raise more funding by voting to mint more DAO tokens, thus diluting the ownership in the DAO in return for a larger treasury. This process of voting and decision making is called the “governance” of the DAO. DAOs are governed by their DAO token holders.
  7. Once the museum is complete, the DAO could vote to disperse a certain percent of their revenue generated (from selling museum tickets, etc) to the token holders. Again those owning more tokens would receive more of the revenue than those holding less.
  8. Eventually some of the original DAO token holders will want to get out of the DAO. They could simply do this by selling their DAO tokens to someone else, potentially for a large profit (if the concept was succeeding) or even for a loss (if the concept didn’t work out). The buying and selling of these DAO tokens could take place on a decentralized order-book exchange like DAODAO.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store