Chain World Project Governance Structure and DAO

DAO is short for Decentralized Autonomous Organization. A DAO is simply an organization that is run by computer code or programs called smart contracts. As a result, the organization can function autonomously without the intervention of a central authority.

By using smart contracts, DAOs are able to operate and execute commands that are requested by entities interacting with the system all without any human intervention. DAOs are typically run by a community of stakeholders incentivized through some kind of token mechanism.

The DAO’s rules and transaction records are stored transparently on the blockchain. These rules are usually voted on by stakeholders. As a general rule in most cases, decisions are made in DAOs through improvement proposals. If a proposal is voted on by a majority of the stakeholders (or satisfies another set of rules in the network consensus rules), it is implemented automatically.

In some ways, DAOs operate like corporations or nation-states, but in a more decentralized manner. Traditional organizations use hierarchical structures and many layers of bureaucracy, but DAOs have no hierarchy. Instead, DAOs use economic mechanisms to align the interests of the organization with those of its members, commonly through the use of game theory.

The members of a DAO are not bound by any formal contract, but are tied together by common goals and network incentives, which are closely linked to consensus rules. These rules are completely transparent and written in open source software that governs the organization. Since DAOs operate without borders, they may be subject to different legal jurisdictions. As the name suggests, DAOs have the characteristics of decentralization and autonomy. It is decentralized because no single entity can make and execute decisions. And autonomous because it operates on its own.

Once a DAO is deployed, it cannot be controlled by a single party, but rather governed by a community of participants. If the governance rules defined in the protocol are well designed, they should be able to steer participants towards outcomes that are most beneficial to the network.