Everything You Need To Know about DAO

As the use of blockchain expands, decentralized autonomous groups are becoming more common.

How to locate, interview and recruit engineers who can create DAOs is covered in this guide.

Decentralization is the main goal of blockchain, which applies to everything from organizations and decisions to tokens and assets.

Decentralized autonomous organizations, or DAOs, are not a very novel idea today.

DAO Development Company had a $21 billion market valuation at the start of 2022, and there were 4,227 of them in the ecosystem.

Decentralized Finance (Defi) specialists predict that in a few years, the sector will expand even further.

As a result, now might be the ideal time to start or join a DAO before everyone else takes advantage of its expansion.

What is DAO?

The term “Decentralised Autonomous organization,” or “DAO,” refers to a community built on code rather than a single central organization as a business, agency of government, or foundation.

It is an internet-based company that is entirely run and owned by its members.

DAOs also include treasuries that only the group as a whole can access. The DAO’s members have voting rights and are able to make suggestions to the group.

The major distinction between a DAO and a conventional business is that the former lacks an executive team that includes a CEO, CFO, and other key positions. Every member participates equally in the organization’s daily operations.

Why DAOs are different from traditional organizations

Hierarchy – Traditional companies often have a clear chain of command and a hierarchical structure. Since everyone is on the same level and the system is democratic, there is no such hierarchy in DAOs.
Leadership – Leadership in DAOs is provided by the community, not by a single person or small group of people. Contrary to traditional organizations, where executives have more authority over the company, this one does not.
Handling Automatically – Fund distribution for charitable reasons is just one example of a service that DAOs fully automate. Traditional organizations, on the other hand, depend on human interaction, which frequently results in bias and manipulation.
Transparency – Traditional organizations have little to no openness because most leadership operations take place in private. DAOs, on the other hand, provide a high level of openness because all organization-wide activity is made public. If your business wishes to create DAOs, you’ll first need to work with DAO developers to carry out your ideas. To win in the new market, you need a team that is knowledgeable and experienced. You can discover all the information you require about the hiring process in this guide.

What are DAO illustrations?

DAOs can be for-profit or non-profit organizations of any kind. The group must only be decentralized and automated as a prerequisite. Here are a few instances:

Charity – Worldwide contributions and membership are accepted by a DAO charity. The members select how the donations will be used as a group.
Ventures – Members of a DAO venture fund combine their investment funds and decide which firms will get funding by casting ballots.
Cryptocurrency – A DAO can be a cryptocurrency run by the community. DASH is a prime illustration of this.

Top 5 Blockchains DAO Developers Use and the Required Skills

Make sure the DAO founders you choose have the qualifications necessary to work on the blockchains of your choice when hiring them.

Here are some blockchains that DAO developers frequently work with along with the DAO development expertise required for each.

Avalanche (AVAX)
Ethereum (ETH)
Solana (SOL)
Tezos (XTZ)
Terra (LUNA)

1. Avalanche (AVAX)

Avalanche is a blockchain that can run smart contracts, making it ideal for DAO creation.

The blockchain also aspires to make transactions cheaper, safer, and faster while yet being environmentally friendly.

High fees and congestion are the two main issues that earlier blockchains have, and these issues are addressed by Avalanche.

Although one of the most popular blockchains in the Defi industry, Ethereum only permits a certain amount of transactions per second.

Sub-second finality is made possible by Avalanche, which can process 6,500 transactions in a second.

Additionally, it has lower gas costs than other blockchains, making it more reasonable for DAO creation.

Examples

Because of Avalanche’s scalability, cost, and speed, many DAOs employ it. Here are a few examples:

SnowbankDAO – The DAO is an Avalanche Network-based reserve currency based on SB tokens. Every SB token in the treasury is backed by a number of assets, including SB-AVAX LP Tokens, which gives them worth.
TimeDAO – This company manages and offers time-locking services for dApps. The Time token serves as the native currency for these apps, which go by the name TimeApps, which are created on the TimeDAO platform.
Wonderland – Wonderland is designed to build a policy-controlled money system on the TIME token as a recovery currency protocol.

Essential Tech Skills

The Avalanche Network requires specific DAO programming expertise from developers.

Solidity – Solidity is the most widely used programming language for creating smart contracts. We’re talking about a high-level, object-oriented, statically typed language that lets programmers build intricate DAOs.
TypeScript – This is a JavaScript superset that enables programmers to create type-safe code. When developing websites, TypeScript and AngularJS are frequently combined.

2. Ethereum (ETH)

The decentralized platform Ethereum is where smart contracts are executed. These contracts, which can aid in the creation of DAOs, are written in programming languages.

The appeal of Ethereum as a blockchain for DAO creation can be attributed to its sizable community, copious documentation, and a broad selection of toolkits. Additionally, Ethereum has a lot of features, including:

Own Opinion – Because of Ethereum’s established consensus and wide distribution, businesses can trust it.
With no alterations – The Ethereum smart contract code cannot be altered once it has been formed, ensuring that the DAO adheres to its original set of regulations.
Funds – On Ethereum, smart contracts can receive and transmit money. Without this feature, managing funds would need the involvement of a middleman.

Examples

Many DAOs are created on Ethereum since it is an established player in the blockchain industry. Let’s examine a few of them:

Uniswap- Uniswap is a decentralized exchange system that enables users to trade cryptocurrencies without a middleman. As Uniswap serves the public good, users don’t have to pay for platform modifications while swapping tokens.
Maker – Anyone can produce Dai, a stablecoin backed by collateral, on this decentralized platform. In essence, MakerDAO aims to stabilize the cryptocurrency market.
Shape DAO – AMM, or automated market maker, is used by Curve, an Ethereum-based exchange liquidity pool, to manage liquidity. The organization’s governance token is CRV in the meantime.

Essential Tech Skills

Understanding Solidity is one of the fundamental DAO development abilities required for using Ethereum.

To create smart contracts for Ethereum, developers need a solid understanding of this statically typed, high-level programming language.

Additionally, they must be familiar with the Geth client and the Truffle Framework.

For automated testing, debugging, and deployment of smart contracts, utilize the truffle framework. Geth, an Ethereum client built on Go, allows programmers to communicate with the network.

3. Solana (SOL)

Due to its cheaper and quicker transactions than Ethereum, Solana has swiftly emerged as a choice for building NFTs and DAOs.

The Proof of History (PoH) idea is used by the blockchain to avoid the requirement for mining and achieve faster transaction rates.

Solana theoretically processes 65,000 transactions per second, which is substantially more than Ethereum’s 15 TPS. The platform also has lower gas costs, which makes developing DAOs less expensive.

Examples

There are many examples of both NFTs and DAOs on the platform since Solana is the perfect platform for them. A few DAOs are:

Fruit DAO – Mango is a decentralized trading platform that offers consumers minimal transaction rates, blazing-fast network speeds, and leverage of up to 5x. Users can trade their assets at almost no cost and earn interest on their deposits or margin positions.
Serum – Serum, a decentralized exchange, also provides quick and inexpensive transactions related to Solana. Serum’s cross-chain functionality sets it apart from several other platforms. It allows you to exchange Polkadot and Ethereum tokens, as well as tokens from other platforms.

Essential Tech Skills

To work on Solana, DAO makers need to have the following abilities:

Rust – Operating systems Windows, macOS, and Linux all support this system programming language. Because of its significant emphasis on safety, it is ideal for developing low-level systems software.
C++ – Some of the most well-known software in the world is made using a potent object-oriented language like C++. It is not surprising that C++ is used frequently for game and DAO development given its adaptability and extensive feature set.

4. Tezos (XTZ)

A token-linked blockchain called Tezos operates without relying on mining the Tez token.

In contrast, token owners are compensated for taking part in the platform’s proof-of-stake consensus algorithm.

Tezos can be used to create smart contracts, just like Ethereum. According to the creators, “Tezos” is a Greek word for “smart contract.”

The platform is different from Ethereum, though, in that it gives users the ability to decide how the network operates.

Tezos intends to constantly develop as a platform since the network’s adaptability is crucial.

Examples

There are some DAOs connected to Tezos, same as other blockchains stated above:

Homebase – This project is based on Tezos. It features BaseDAO, a smart contract architecture that enables the creation of DAOs on the blockchain. Homebase’s user-friendly UI makes it possible for almost anyone to create a DAO in a few simple steps. Additionally, the DAO participants receive a dashboard where they can vote on suggestions to update or change the smart contracts.
DAO Kolibri – The Kolibri DAO, a smart contract that is supported by kDAO, an FA1.2 governance token, will manage and direct the Kolibri Protocol. The Kolibri Protocol tries to prevent any one entity from having sole control over the protocol.

Essential Tech Skills

Only a few DAO engineers are proficient with Tezos, despite the fact that the majority are familiar with Solana and Ethereum.

Hence, when selecting DAO developers to work on Tezos, keep the following in mind:

LIGO – Written in a high-level, statically-typed language, Tezos smart contracts are created using this language. The developer you choose should be knowledgeable in LIGO’s guidelines and application.
Michelson – Developers who create smart contracts for Tezos utilize the domain-specific programming language Michelson, which is where LIGO is assembled.
SmartPy – A platform for creating Tezos smart contracts is called SmartPy. Even though SmartPy is very user-friendly, developers still need a lot of prior platform knowledge.

5. Terra (LUNA)

A public blockchain called Terra allows users to lend and borrow digital assets. The network’s token prices are stabilized using a special algorithm.

The Terra team firmly believes that digital assets should be utilized as collateral for loans since doing so will significantly speed up the widespread adoption of blockchain technology.

The two-token structure that Terra uses sets it apart from other blockchains. The network’s digital asset prices are stabilized using the first token, Luna. Paying for products and services is done with the second token, called Terra.

Examples

On the Terra blockchain, there are a few DAOs:

Leserve DAO – The Leserve protocol can be completely controlled by token holders, ensuring its openness and objectivity.
Apollo DAO – Using auto compounders, Apollo DAO offers liquidity and enables simultaneous purchases and sales of reward and liquidity tokens.

Essential Tech Skills

Not many developers will be familiar with Terra because it is less widely used than Ethereum. The following are essential DAO programming abilities required to work on Terra:

Rust – These computer programs are used to create smart contracts on Terra. Rust is a good option for creating smart contracts since it includes integrated package management, substantial documentation, and error warnings.
Terrain – Rust-written smart contracts can be created, tested, and debugged by developers using Terrain and LocalTerra. Before putting test transactions on the main net, the terrain can simulate them.
CosmWasm – CosmWasm’s WebAssembly runtime enables programmers to create smart contracts in Python, JavaScript, and Rust. The intermediate programming language CosmWasm makes it easier to create a virtual machine from the developer’s preferred language.

Conclusion

You might wish to start developing your team now because we anticipate DAO development to become more popular in the upcoming years.

But before you hire DAO creators, you must confirm that they have the necessary abilities, information, and expertise in a specific blockchain.

On job boards, LinkedIn, and other talent marketplaces, you may look for and recruit DAO engineers.

Talent marketplaces like Revelo are a rapid way to find vetted talent that has the DAO development abilities particularly matched to your company’s needs, while other options take more time and effort.

If you are looking for the top-notch White Label NFT Marketplace Development company then contact Suffescom Solutions.

Contact us if you have any further inquiries regarding how to recruit DAO developers. Revelo is pleased to respond to your questions and assist you on your DAO journey.