How can you create your own DAO?

Our objectives frequently change over time. Most of us were fine with 20 Facebook followers before blockchain. We can now construct homes online and create our own DAO (Decentralized Autonomous Organization). DAOs are bringing transparency and automation to online businesses.

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Jay Crypto

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Last updated Aug 18, 2022 at 5:17 PM

Posted Aug 18, 2022 at 5:09 PM

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In this blog, you will learn to create your own DAO without much hassle and technical knowledge.

DAOs are a well-known governance model in the blockchain industry. You can set up a DAO fast with a few tools and a little technical know-how. But before going into details of how you can create a DAO, let’s explore what it is.

What is a Decentralized Autonomous Organization (DAO)?

A DAO, as its name indicates, is an organization that is run entirely by computer code and is accessible to everyone. Being autonomous, smart contracts enable the bulk of operations to function without human involvement. A community creates and runs a DAO, managing its resources and initiatives as a whole.

A DAO is open to everyone. If you invest a handful of DAOs currency, you can join as a full member. This often happens when the project is being funded. This stage will need the most of your focus while creating a DAO.

Most DAOs are created with a specific objective in mind – anything from running a complex organization to organizing a local church's fundraiser. Some people can construct a DAO without even having a valid cause. CityDAO is one of the many DAOs in the crypto ecosystem. With the help of this platform, you can purchase a digital NFT that represents real estate and choose what happens to it.

Factors to Consider Before Creating a DAO

DAO members can be held personally liable indefinitely. DAOs are not traditional businesses. They don't adhere to any of the legal requirements applicable to traditional businesses. More than just your initial investment might be at stake.

DAOs encounter several legal difficulties. DAOs are not recognized as legal entities, particularly in the United States, because of their decentralized nature. They receive no  government protection. In simple words, it is quite challenging to settle legal conflicts within a DAO.

DAO users remain unidentified. Associates can conceal their identities according to the organizational structure of a decentralized autonomous organization. You won't know anything about the people you work with, Other than their wallet addresses.

How to Create a DAO?

Crypto space has various open sources by which you can create a DAO. Sources like Moralis provide code templates from which you can easily copy and paste to develop your own DAO platform.

Aragon is used widely for creating decentralized autonomous groups. Follow these steps to establish your own DAO on Aragon.

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  1. Create a cryptocurrency wallet account first. You'll need it to cover the setup costs. Without a doubt, the right choice for this kind of transaction is Metamask.
  2. Open Aragon and select Create Your DAO from the menu. You will then be sent to the welcome page, where you have the choice of creating a new DAO or joining an existing one.
  3. Join Aragon to Metamask or a cryptocurrency wallet. If you have additional networks linked to the same wallet, be sure to utilize the Ethereum Mainnet.
  4. Usually, the cost of creating a DAO is 0.2 ETH, but you should have 0.3 ETH in your wallet to be on the safe side.
  5. Choose your design by clicking on "Create an Organization". Except for Open Enterprise, your decision will not significantly affect your DAO.
  6. Give your DAO a name.
  7. At this point, you must configure your organization, comprising Vote Duration, Support Percentage, and Minimal Approval Percentage. 50% approval is the suggested level for voting percentages, so that for a proposal to be approved, more than 50% of token holders must concur. However, you can change these figures to suit your preferences.
  8. A native token should be created for your DAO. Give it any name you like, and design a symbol for it. In the same phase, you may also give out tokens to the DAO participants.
  9. To form a DAO, verify the payment from your cryptocurrency wallet.
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Once your DAO is operational, formulate the first proposal question. Then, token owners will cast a yes or no vote on the matter.

Wrapping Up

Now that you understand how to create your own DAO, it's time to execute your plan. DAOs assist us in establishing fundamental connections with the world and like-minded individuals. Although it was constructed with money in mind, it now resembles a community more. Many DAOs are developed for charitable and non-profit causes. There will be more, and we look forward to DAOs overcoming their difficulties.

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