# Differences Between Network States And DAOs

<figure><img src="https://lh3.googleusercontent.com/aa2UwE6oQqEQsaXZnOKuhC6E3slqau5a3M2gmfz5yIntzxZHImy9-XcbIOyEzU2fPX4tlY28BxfjfJ-xIYmlnR4Bjtmy9xbG1HFj_tsBUWGsuxyle80O4-xehMYor03ggQievcLNavbVHgtlp_eplMU0KML-i0cPTtj0gvz9PpJPLevTW8Q0Jp36qSEY2w" alt=""><figcaption></figcaption></figure>

Network States and DAOs are inherently different, although there may be versions that appear similar. In principle, a Network State is a Web3 based organization with common values and culture with a population of +1 million. DAOs are usually token-based, focused on collective asset management, through decentralized decision-making. Network States and DAOs are inherently different, although there may be versions that appear similar.

<figure><img src="https://lh6.googleusercontent.com/sgHSbDc_WdTDoRUKYiCuNTbNy8Q2g8Y0Hpzh-HeidbfCjnaiepTTmlUuQWPRERJL3CfJNzen3pdRcD9fXwk4RAtTWZ_BPq_SWkC7Yr-OmnW8v9Cp4vBiArub9PmyRdDuagOjvmNSgMCcg5yQY2JzbGumHrlRZzwamJionPBJXljCcLGp8n3XFjeWZEcSLw" alt=""><figcaption></figcaption></figure>

Network States are value-based, and while they may be decentralized (one member, one vote) a Network State could also have centralized leadership, if citizens choose that. Their evolutionary path will be different from that of a DAO:

<figure><img src="https://lh3.googleusercontent.com/sDArckOd9IdD-oOGK9lvENrGahIYBmc8nlQztYHCPvmTMv4CSyt4_IY15v0qrMYkzDZ31raLkCkApT-t0P_4HNbvESv5_5t5bmxhJPtQgFqsqDuUjF0GeBWkmysj9z8vYNvDuXAe-E04hdJMcbIGAeLsq7qJwDHTwWWyspPOwAU5W3Uj9GkRvH4MOJWAHw" alt=""><figcaption></figcaption></figure>

There could be DAOs that look similar to Network States and Network States that look closer to DAOs. There may be grey areas and edge cases in practice but the two concepts are meaningfully distinct.


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