DAO

DAO Is an acronym for decentralized autonomous organization. This is an organization of entities (both individuals and businesses can participate) that may be entirely web3 entities without known corresponding off chain identities. The organization is not subject to external control so it is autonomous. And it is run by the members using smart contracts so it is decentralized. Members participate by holding tokens and using them in staking and voting systems to make decisions about shared resources, which to date have always been cryptocurrency assets. DAOs have typically concentrated on earning returns for members by investing in DeFi projects or NFTs, lending, or investing funds to develop DAPPs or games, but there are also charity DAOs.

How are DAOs relevant to the Network State?

DAOs are a model for blockchain based decentralized control of collect resources. But DAOs typically put a lot of emphasis on “skin in the game” and voting power may be directly proportional to tokens staked in voting systems. Some may prefer their Network State systems to give more weight to the right of each individual to have influence regardless of their financial contribution. Network States could be thought of as a special type of DAO that gives weight to each individual citizen regardless of their financial participation, after, perhaps, a certain minimum is met. Network States might also assign voting power based on participation levels. The more engaged you are, the more your opinion counts.