I woke up in a very positive mood today which is super strange. My weekend was abit crazy. I hope yall had a good weekend tho. Chachababe is back baby. The topic today is DAO. What? You heard me, DAO. Yes yes yall chill. Chachababe will explain it to you today with the knowledge I get from internet that's for sure. Please stay with me til the end okay we got this.
What is DAO?
DAO stands for Decentralized Autonomous Organization which is a community-led entity with no central authority. One of the major features of digital currencies is that they are decentralized. This means they are not controlled by a single institution like a government or central bank, but instead are divided among a variety of computers, networks, and nodes. Exactly, no boss! In other words it is fully autonomous and transparent and independent of any human intervention including its original creators. The important feature of DAO is smart contract. Smart contracts lay the foundational rules, execute the agreed upon decisions, and at any point, proposals, voting, and even the very code itself can be publicly audited. Sound familiar right? They work similarly because it is running on blockchain. Everything is relates baby. They all family I would say.
A mistake...
However it is not always going smoothly. It's life, baby. The chances of the 'errorness' is almost 0 but something happened back in 2016. Hackers attacked the DAO that called DAO based on these vulnerabilities. These motherfuckers gained access to 3.6 million ETH, worth about $50 million at the time. Fuck! Oopssiiee sorry. I mean it was the first DAO that ever created so it wasnt secure enough and then boom! shit happened. We tolerate that i guess. We all made mistakes.
This prompted a massive and contentious argument among DAO investors, with some individuals suggesting various ways of addressing the hack and others calling for the DAO to be permanently disbanded. Oh shit. This incident also figured prominently in the hard forking of ethereum that took place shortly thereafter. Following that massive hacking incident, several prominent digital currency exchanges de-listed the DAO token, marking the effective end for the DAO as it was initially envisioned. Damn.
How this shit works?
Now lets move on to the next step. As I always do in every article Ive wrote, Chachababe always give yall one or two examples. We're on this together, besties. "Chachababe how do DAO works?". Theres soooooo many DAO now. Everyone's doing it and it is really happening. You heard about NFT right? It is all over the news now. Ive written it on my article about NFT (you should check it if you havent because what the fuck you doing) and you heard these names or lets say it club, ive mentioned there. You buy NFT you automatically being part of the club. What benefits you'll get? A right to vote. Yes a fucking vote. So if these people that own NFTs want to build a project or anything you can vote for it.
Ive seen this news from internet that theres this file or document from the United State that these important people signed on it. They call it 'the Constitution of the United States of America' wtf. And these people in crypto gang make DAO to get that fucking document. "Chachababe wheres the money come from?" Ok bestie, i got you. The money is from the investment that they put on a vault. They put it all together. So basically everyone that is in the gang could make something. And if the project cool enough, everyone in the gang would probably vote for it. But unfortunately this one rich guy that isnt part of DAO bought the document by himself so we can say that this DAO did not succeed. I got brain freeze when I read this news. This just too much for me because I still cant believe that this shit is actually happening.
It is not only if you can make it to a DAO only if you have NFTs. That doesnt work like that honey. If you have something in crypto currency, this is like a ticket for you to enter the show. You have right to vote as well as you could make any project or DAO. But as ive mentioned on the previous paragpraph, everyone that is part of it has to all agree so then the DAO could work. Please tell me you get this shit Im talking about because this is the easiest way I can explain to you. Yall are smart I knew you know more than I do. Were on this together besties. So please correct me if i get things wrong. Dont be a bitch and attack me unless you down for a fight.