This is the Definition of Dao Crypto and How it Works

DAO crypto (Decentralized Autonomous Organization) is an open blockchain protocol regulated by a legal system. 

This protocol is implemented by elected members who perform certain actions automatically without the need for an agent. If you are still new to DAO crypto, you can listen in the following review.

Definition of DAO Crypto

The idea of a Decentralized Autonomous Organization (DAO) was first proposed by the founders of BitShares, Steemit and EOS (Block.one) and Larmier in 2015.

Then in 2016, Vitalik Buterin Ethereum modify the idea. Independent companies can help maintain a healthy and optimal network, without requiring assistance from their members.

The first idea in creating a crypto DAO is to create a company or organization that works completely without a common management system within the organization. Its main function is to bring together people with the same interests to achieve a common goal.

Autonomous organizations differ from traditional organizations in that they are managed by a board, committee, or executive. In contrast, an autonomous organization uses a set of rules written in digital code and a network of computers running interactive software.

Simply put, crypto DAOs are companies or organizations that are run by computer algorithms, so they are not directly controlled by humans.

To become a member of this group, users must first join by donating their cryptocurrency.

By owning DAO crypto assets, users get the right to choose a plan and renew automatically. This is determined by the amount of DAO crypto assets they have.

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How Cryptocurrency DAOs Work

Now that we know what a Decentralized Autonomous Organization is, let's take a look at how it works. Decentralized Autonomous Organizations operate under a set of rules and regulations dictated by smart contracts on the blockchain. 

Smart contracts are computer programs that can run independently on the Ethereum system. However, at the same time, the law still obliges the work of other people, in this case a person, to monitor all work and perform many tasks that he cannot do alone.

When the financial system is complete and independent companies can work, the organization will automatically be independent from itself and its creators.

Later, all orders and financial transactions will be recorded in detail at blockchains. In this way, the transaction records in the Decentralized Autonomous Organization are transparent and cannot be changed or even deleted. 

Although the Decentralized Autonomous Organization works well, all decisions about the use of money are made through contractual agreements. Later, each shareholder can make a plan with the organization's future plans. 

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However, to avoid being just a plan, each shareholder has to invest a certain amount. Only proposals that receive shareholder approval will continue to use DAO crypto.