DeFi projects of all kinds have flourished as blockchain technology provides a solid foundation for the decentralized financial revolution by enabling automated, trusted transactions and exchange of value. For DeFi, if smart contract replaces intermediary service to realize automatic operation of program, THEN DAO is the organization system of DeFi operation and realizes decentralized governance and operation in operation and management.
In a sense, DAO embodies the openness, democracy and diversity of DeFi world in terms of "organization", and endows DeFi project with the soul of decentralization.
So, what is the DAO and how does it work?
The full name of DAO is Decentralized Autonomous Organization. This concept originated with EOS founder Daniel Larimer's idea of a centralized autonomous corporation, before Vitalik Buterin formally defined the CONCEPT of DAO in ethereum's white paper.
In short, DAOs are smart contracts that exercise rights by holding governance tokens, a set of automatically triggered organizational rules that do not require intermediaries. Instead of being run by a small group of executives, as in a traditional institution or organization, the rules are set by code and enforced by the network of computers running the software.
This means that once the rules are set, they are the same for everyone. Any changes are decided by a combined vote of all participants rather than a single decision maker, and the vote is automatically calculated and executed by software, completely eliminating human intervention and greatly increasing transparency while achieving democracy.
For example, if you are going to operate a "self-service hotel", in the initial planning stage, you must plan a series of issues: for example, how to arrange the room after the guests pay for it, food and beverage service, regular replenishment, regular cleaning, prepayment of water and electricity rent, etc. All of these need to be deployed before the hotel opens, which can be quite difficult.
In order to avoid omissions, you communicate your ideas to as many people as possible and get them to join you in running the hotel: everyone is a shareholder of the hotel and participates with you in the planning and decision-making of the hotel operation. When the "unmanned hotel" officially opens, the hotel will automatically operate according to the model you and the shareholders planned, and even you, the initiator, have no right to interfere with the normal operation of the hotel. Of course, if the majority of people agree to change the hotel's automatic operation model, then it is possible to change the plan already in place.
The “Self-service hotel” is actually a smart contract in the blockchain. After perfect planning, the running track will never stop once it is determined. Even the initiators can not change the contract code without authorization. The contract code can only be changed if 51 percent of token holders agree to the new scheme through a vote.
Bitcoin is considered the first full-fledged DAO because of its pre-programmed rules and ability to operate autonomously according to consensus mechanisms. Subsequently, ethereum's smart contracts lowered the barrier to DAO development, allowing more people to participate in the process, and allowed the DAO to evolve into what it is today.
In the structure of DAO, every member has the opportunity to shape the most perfect and efficient DAO in his mind. Every organizational rule, agreement, clause and transaction record can be queried on the blockchain, and all records are open and transparent and cannot be tampered with. Therefore, DAO is a brand new way of human organization collaboration, representing a higher level of fairness and freedom through decentralized management.
At present, DAO has a wide range of application scenarios by virtue of its open, democratic and untamper able characteristics on the chain. Any decentralized autonomous organization can be understood as DAO in a broad sense -- it can be a DeFi project, a charity or a crowdfunding organization, and of course it can also be applied to GameFi. To further enhance the autonomy and control of blockchain game players.
The DAO was the most appropriate and beneficial choice for PUGG, which was committed to building the portal platform to the metaverse. PUGG's P2E (Earn While Playing) mode, based on an open and transparent community governance model, delivers more benefits and revenue back to the players, enabling them to play main roles, make decisions and together build the game world, creating a portal into an equal and open metaverse with sustainable production and governance.
In a sense, DAO embodies the openness, democracy and diversity of DeFi world in terms of "organization", and endows DeFi project with the soul of decentralization.
So, what is the DAO and how does it work?
The full name of DAO is Decentralized Autonomous Organization. This concept originated with EOS founder Daniel Larimer's idea of a centralized autonomous corporation, before Vitalik Buterin formally defined the CONCEPT of DAO in ethereum's white paper.
In short, DAOs are smart contracts that exercise rights by holding governance tokens, a set of automatically triggered organizational rules that do not require intermediaries. Instead of being run by a small group of executives, as in a traditional institution or organization, the rules are set by code and enforced by the network of computers running the software.
This means that once the rules are set, they are the same for everyone. Any changes are decided by a combined vote of all participants rather than a single decision maker, and the vote is automatically calculated and executed by software, completely eliminating human intervention and greatly increasing transparency while achieving democracy.
For example, if you are going to operate a "self-service hotel", in the initial planning stage, you must plan a series of issues: for example, how to arrange the room after the guests pay for it, food and beverage service, regular replenishment, regular cleaning, prepayment of water and electricity rent, etc. All of these need to be deployed before the hotel opens, which can be quite difficult.
In order to avoid omissions, you communicate your ideas to as many people as possible and get them to join you in running the hotel: everyone is a shareholder of the hotel and participates with you in the planning and decision-making of the hotel operation. When the "unmanned hotel" officially opens, the hotel will automatically operate according to the model you and the shareholders planned, and even you, the initiator, have no right to interfere with the normal operation of the hotel. Of course, if the majority of people agree to change the hotel's automatic operation model, then it is possible to change the plan already in place.
The “Self-service hotel” is actually a smart contract in the blockchain. After perfect planning, the running track will never stop once it is determined. Even the initiators can not change the contract code without authorization. The contract code can only be changed if 51 percent of token holders agree to the new scheme through a vote.
Bitcoin is considered the first full-fledged DAO because of its pre-programmed rules and ability to operate autonomously according to consensus mechanisms. Subsequently, ethereum's smart contracts lowered the barrier to DAO development, allowing more people to participate in the process, and allowed the DAO to evolve into what it is today.
In the structure of DAO, every member has the opportunity to shape the most perfect and efficient DAO in his mind. Every organizational rule, agreement, clause and transaction record can be queried on the blockchain, and all records are open and transparent and cannot be tampered with. Therefore, DAO is a brand new way of human organization collaboration, representing a higher level of fairness and freedom through decentralized management.
At present, DAO has a wide range of application scenarios by virtue of its open, democratic and untamper able characteristics on the chain. Any decentralized autonomous organization can be understood as DAO in a broad sense -- it can be a DeFi project, a charity or a crowdfunding organization, and of course it can also be applied to GameFi. To further enhance the autonomy and control of blockchain game players.
The DAO was the most appropriate and beneficial choice for PUGG, which was committed to building the portal platform to the metaverse. PUGG's P2E (Earn While Playing) mode, based on an open and transparent community governance model, delivers more benefits and revenue back to the players, enabling them to play main roles, make decisions and together build the game world, creating a portal into an equal and open metaverse with sustainable production and governance.
