# FAQs

<details>

<summary>Why isn't a Network State a DAO?</summary>

DAOs are usually built to manage common resources with token-based voting criteria. Societies are built around values and guided by a leader, community, and, in advanced stages, a participatory governance model. In the early stages, members vote as members, not as token holders.&#x20;

A Network State is designed to manage 1M+ people and have an impact in the physical world. While some Network State founders may envision a token-based voting model, we expect democratic forms of voting to be person-based and contribution-based, rather than token-based. The two concepts share some common elements but are different.&#x20;

As an analogy, Instagram and Facebook in the early days could have been compared because both are capable of connecting people.&#x20;

Network States and DAOs are different:

* DAOs tend to be closer to the concept of decentralized forms of organized activity, such as companies or no-profit associations.
* Network States are closer to forms of organized social constructs such as States and Nations.&#x20;

And while DAOs are by definition decentralized, a Network State could begin with centralized leadership with the option to become centralized over time.

</details>

<details>

<summary>Are there differences with Balaji's thinking?</summary>

The Jur framework is compatible with [The Network State](https://thenetworkstate.com/) book but more flexible. It supports different views of the Network State concept. The main difference is that for the purposes of this documentation "Network State" is a network with an on-chain social contract, regardless of traditional diplomatic recognition. In Jur we have a thesis regarding the issue of diplomatic recognition that goes beyond what Balaji envisions in [The Network State](https://thenetworkstate.com/) book.

</details>


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