How to Create a DAO?

A DAO is a type of governance commonly used for DApps, projects, and crypto-investment funds. Starting an organization with someone that involves funding and money requires a lot of trust in the people you’re working with. But it’s hard to trust someone you’ve only ever interacted with on the internet. With DAO you don’t need to trust anyone else in the group, just the DAO’s code, which is 100% transparent and verifiable by anyone.

in this article, we try to explain about why should need DAO? what does a DAO need? and finally how to create a DAO ? its too fantastic for me.

Why Should need DAO?

A decentralized autonomous organization (“DAO”) is a collectively owned and managed entity with a set of rules written in computer code. They are organized around a set of rules on the blockchain and structed with smart contracts. DAO’s have some significant advantages. Perhaps the most important is on smart contracts. These on-chain pieces of code make DAOs less reliant on human input to operate. For example, a proposal could have its results posted on-chain and automatically trigger a proposed change. A new proposal can’t be censored, and votes cannot be technically rigged.
DAOs have no centralized leadership. They are managed by the members who are responsible for decision-making authority and community participation.
DAOs are useful ways to organize communities, especially if they are mostly anonymous. A DAO allows them to organize themselves efficiently with technology that guarantees integrity. It’s also easier than creating a traditional organization or entity as many projects have international teams. Finally, a DAO is a cheap option for its functionality in organizing people. You can set one up for free or pay a small fee to do so.

What does a DAO need?

Creating a DAO is relatively simple. First, the smart contract is created and the DAO´s governance structure is developed. These rules are embedded on the smart contract. Next, the DAO project needs to raise capital to launch. DAOs typically receive their funding by issuing DAO token. These tokens give the members voting rights in the DAO. Lastly, the DAO´s operation is then implemented. Everything is transferred to the blockchain. If the DAO needs to make a decision, the community members must vote upon such changes. That said, there are a few key factors to be informed of when considering forming a DAO.

5 point you should cover to success in DAO

  1. Purpose : A DAO needs a purpose. DAO’s are simply a way of organizing projects or funds. Without a good underlying project and reason, your DAO will have nothing to run.
  2. voting mechanism : A DAO needs a voting mechanism. This is the primary way people interact with the DAO and make changes. There are multiple ways to do this. You could create your own voting mechanism or use a third-party provider, as we discuss later. Your DAO may even vote to change the mechanism later, but you need to start with something.
  3. Way to manage its funds : A DAO needs a way to manage its funds. Most DAOs will have a treasury or access to some crowdfunding. This is usually held in a multi-signature wallet, which can only be used if all key participants agree.
  4. Governance token : A DAO needs a governance token or share system. How will people prove their right to an opinion in the DAO? A governance token is very common, and the token often might also be a utility token. A shares system is more common to funds where users deposit cryptocurrencies with the DAO to be invested.
  5. Community : A DAO needs a community. Decentralization gets stronger as more people join and participate in the governance of your DAO. This way, power is spread across more stakeholders.

How to Create a DAO?

Before creating a DAO, pay attention to the above requirements so that it is easy for you to build a DAO in a few minutes in dApp atriums such as Solana, Aragon, Polygon, Moralis , etc.

Necessary items before starting to create Dao

Before you start creating a Dao, it is best to know what the Dao needs:

  1. A purpose.
  2. A voting mechanism.
  3. A governance token or share system.
  4. A community.
  5. A way to manage its funds.
  6. Own an Ethereum Name Service domain.
  7. Make sure you have enough crypto to pay the DAO creation fee (0.2 ETH plus gas fees).

The DAO setting is different in atriums, but it is so simple and complete that you can do it with a few simple clicks. but you need these:

  • An Ethereum node.
  • MetaMask.
  • Some Rinkeby test ETH.

By following steps create a DAO, Web3 and Metamask will help you connect your organization to a model of your choice, a source of revenue and a wallet, and a support community.
Simply follow these steps by going to the Dao build page in 10 minutes with Moralise or how to create your DAO with Aragon.


DAOs are taking the world by storm as the next generation of financial and business innovation. DAOs offer many advantages over traditional corporations such as decentralization, Voting with the authority of members and decision making, automatic code execution through smart contracts, and pooling of resources and funds.

That said, DAOs face numerous legal challenges because they are not recognized as a legal entity. Their lack of legal status involved along with the anonymity of DAO members make any attempts at compliance very challenging for DAOs.

Only a consistent regulatory framework can provide the legal certainty needed for DAOs to flourish without being hindered by regulatory inconsistency and gaps.

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