What is DAO Summoning?
DAO Summoning is the process of creating a DAO, which stands for Decentralized Autonomous Organization. A DAO is a type of online organization that is run by its members, instead of by a single leader or group of leaders. It's like a club or a company, but it's on the internet and it's run using a special kind of computer program called a smart contract.
A DAO is created when a group of people come together and agree to follow certain rules and make decisions together. These rules and decisions are written in the smart contract, which is a program that runs on the blockchain, a special kind of computer network that is used to create and track digital currencies like Bitcoin.
Once the DAO is created, anyone can join and participate in its decision-making process. Members of the DAO can propose new ideas and vote on them. The smart contract will automatically execute the decision that gets the most votes.
The use of “summon” in the context of forming a new DAO is an expression of the urgency of calling on a community to form around a shared purpose or common values, as well as a dedication to the fundamental DAO ethos of distributed and collective ownership. In contrast, the formation of traditional companies and organizations – which are typically neither community-driven nor community-owned – is marked by more utilitarian terms like “create,” “start,” or “fund”.
Simplified example of DAO Summoning
A DAO Summoning is like a club meeting. Imagine you and your friends have a club where you all get together to make decisions and plan activities. Just like in a club, in a DAO, everyone has a say in what happens and can vote on different proposals. The votes are counted automatically, like a robot, and the outcome is carried out, just like how you and your friends would carry out the plans you make at your club meeting. And just like how a club is run by the members and not by one single person, a DAO is run by all its members, rather than by a boss or a company.
An example of DAO Summoning
MolochDao - is a decentralized organization that focuses on funding projects that are building infrastructure for the Ethereum blockchain. Members of MolochDAO can propose projects to be funded and vote on which projects should receive funding. The smart contract will automatically distribute the funds to the winning projects.