By
Svetlana Soroka
April 20th, 2024
The entire value of a Memecoin is derived from its community.
A Decentralized Autonomous Organization (DAO), sometimes known as Decentralized Autonomous Corporation (DAC) is an all-new way of organizing with individuals globally without knowing each other, where all activities within the community are encoded on a Blockchain. DAOs can be defined as an organization characterized by rules encoded as a transparent and verifiable program that is controlled by its community members without any influence of any individual governing body. As DAOs are built on open-sourced blockchain, anyone can view their code and audit it, including their treasuries.
DAOs have the benefit of all organizational rules to be embedded in code, thus no managers are required, removing any bureaucratic hurdles that may exist in a traditional organization. If one is looking for the answer to the age-old question, “How is it possible to exchange information and value in a trusted environment?”, DAOs may be an answer.
How Do DAOs Work?
The backbone of a DAO is a smart contract, which represents the rules of the organization and works as the Organization’s storage. The immutable nature of smart contracts makes it impossible to edit the rules of the organization without the consensus of the community. Although there are multiple ways of deploying Smart Contracts nowadays, Ethereum was the first to use them.
Individuals with a stake in a DAO get voting rights and get the capacity to impact the operations of the organization by deciding on or creating new governance proposals. Decentralized and distributed voting rights and trustless underlying mechanism makes DAOs the ideal way to govern a community-driven token.
Governing Community Tokens through DAOs
The power to make a decision in a DAO is given to each token holder. While the power is proportional to the tokens held by each member, it doesn’t give them more rights or privileges. Token holders can influence changes that further develop the protocol, making DAOs a truly decentralized space.
There are numerous DAO tokens in existence currently, owing to the boom of the DeFi movement. The most popular ones are trailblazing projects like Uniswap, Aave, Curve DAO, Maker DAO, and so on. These projects have shown that billions of dollars worth of assets can be securely stored and programmed by decentralized organizations.
Memecoins with DAOs
The entire value of a Memecoin is derived from its community. There are some massive communities brought together by Memecoins such as Doge, Shiba Inu, Magic Internet Money, BabyDoge, and so on. Although none of them are exclusively governed by a DAO, Floki Inu has recently announced a transition to it.
FLOKI is known for its aggressive marketing campaigns powered by its strong community. Their team has decided to begin a gradual and phased transition to a DAO. However, there are Memecoins like Mononoke Inu that have been developing a DAO since their inception.
Mononoke Inu isn’t a typical meme coin, as it has numerous utilities. It is an entire ecosystem with a web-based 2D adventure scroller game that can be played on both mobile and desktop. Its inherent Play to Earn (P2E) design was made to attract and market to a large target demographic.
The primary goal of Mononoke Inu’s development team was to create a token to habilitate DeFi’s unity and patch conviction amongst teams and communities. With community at the core of the project, Mononoke Inu’s DAO is the perfect way to operate and develop the project.