DAO ( Decentralized Autonomous Organization ) Complete Guide 🚀

The blockchain world is rapidly developing. From being noticed by mainstream companies in 2021 to its large-scale application now in 2025. The DAO has, to some extent, become the cornerstone of Web3. 🌐

What is DAO? 🤔

DAO is one of the core applications of DeFi. It's somewhat like a decentralized venture capital fund. There is no board of directors. No conventional management structure. Smart contracts automatically execute decisions. Global investors can participate anonymously. They have voting rights. Risks are significantly reduced.

Mark Cuban, the billionaire, said in 2022 that DAO is "the ultimate combination of capitalism and progressivism." He believes that DAO will challenge traditional businesses. It seems that there is some truth to this statement now. ✨

The Essence of DAO 💡

DAO is the ultimate form of decentralized investment. It does these things:

• Fundraising supports Blockchain projects
• Give voting rights with tokens
• Smart contract execution decision
• Community voting decides how to spend the money

Centralization of governance tokens? It is indeed a problem. However, compared to traditional Blockchain, DAO feels like it has made further progress in terms of trustlessness and decentralization.🔐

Types of DAO 📊

Agreement DAO

This is the largest category. It supports the entire DeFi market. Mainstream protocols like Uniswap, Maker, and Aave belong to this category. It manages DeFi with decentralized principles. It addresses the fairness issues of traditional finance.

Risk DAO

It's about investing in DAO. Many people pool money to invest in new projects. Unlike traditional funds, decisions here are entirely community-driven. Ordinary people can also get involved in early projects. It's pretty cool. 🌱

Fund DAO

Similar to the risk DAO. Mainly provides funding for innovative DeFi projects. Simplifies the fundraising process. By 2025, they have driven a lot of Web3 innovations. 💰

Social DAO

Decentralized social network. Paid membership, earn tokens. Similar to Bored Ape, it only allows specific NFT holders to enter. A bit exclusive. 🎭

Collect DAO

Everyone buys expensive things together. Especially expensive NFTs. Small investors can also own a part of the ownership of famous paintings. Not bad. 🖼️

Famous DAO Cases 🌟

Uniswap (UNI)

The largest DEX on Ethereum. Governance is managed with UNI tokens. Launched in September 2020. Token holders vote to determine the direction of the platform. By October 2025, they have adopted multiple Layer 2 solutions. The network is less congested.

Decentraland (MANA)

Pioneers of the Metaverse. The Decentraland DAO controls the smart contracts and assets of the ecosystem. It manages LAND contracts, wearables, servers, and markets. It seems to be the first truly decentralized virtual world. Well-defined. 🌆

Aave (AAVE)

Mature DeFi protocol. Aave Governance DAO allows users to participate in management. They invented flash loans. Uncollateralized lending, but must be paid back in the same Block. Now in 2025, Aave has started playing with multi-chain. Not easy. 🔥

OpenDAO (SOS)

New DAO. Mainly supports NFT communities and protects creators' rights. Still under development.

2025 DAO Development Trends 📈

Web3 has matured, and DAO is no longer just a simple governance tool. It has become more complex now. It supports cross-chain, real-time voting, and dynamic governance. The new framework allows for sub-DAO structures. Large organizations manage different businesses more efficiently.

In China, the mainland has strict control over cryptocurrencies. However, Hong Kong has passed the "Stablecoin Bill", exploring the tokenization of financial products. This has left some space for the development of DAOs in the Chinese market. Limited, but crucial. 🌕

DAO is the core of decentralized finance. It will continue to change the way organizations govern, allocate funds, and make collective decisions. Whether in the fields of investment, socializing, or innovative funding. This trend seems unstoppable. 🚀