What is a DAO?
The decentralized autonomous organization, or DAO, is a new type of organization where members work together to collectively fund projects 🤝.
The YangDAO was created specifically to allow the Yang Gang community to coordinate and fund projects that we decide are in our shared interest, whether that’s a Federal Meme Reserve 🏛, Freedom Dividend pilots 💰, or that new MATH blockbuster movie 🎬.
How does the YangDAO work?
The YangDAO is a decentralized organization on a blockchain.
All transactions on the YangDAO run on Ethereum, the world’s leading programmable blockchain.
Like Bitcoin, Ethereum is not controlled by any person or entity — instead, it is an open network which is managed by a global network of users. All membership proposals, voting, and movement of funds in the YangDAO are governed by smart contracts on the Ethereum network.
A prospective new member applies with a membership deposit and a proposal on how to use funds in the collective the Freedom Bank (the collective funding pool).
Existing members then vote on the applicant.
If accepted, the new member receives shares, which allow them to vote on YangDAO proposals and prospective members.
At any time, a member may ragequit, exchanging their shares to withdraw a proportional share of the money in the Freedom Bank.
Control over the YangDAO and how the money is spent is decentralized, reducing the chance that an evil villain could come in and corrupt the system. If that somehow does happen, you can ragequit and peace out ✌️.
What currency does the YangDAO support?
The YangDAO uses DAI, a trusted digital currency which is built on Ethereum. Unlike Bitcoin, DAI is pegged 1:1 to the USD (i.e. 1 DAI = $1 USD), removing the concerns of volatility 📈📉.
Members will need a little bit of Ether (ETH), the native currency of the Ethereum network, to pay for small transaction fees ⛽ in order to participate in the YangDAO.
Where can I learn more?
The Moloch DAO: Beating the Tragedy of the Commons using Decentralized Autonomous Organizations, by Ameen Soleimani, Arjun Bhuptani, James Young, Layne Haber, & Rahul Sethuram
Inside Moloch: A new DAO aims to fix Ethereum, by Ben Munster
The Moloch DAO: Collapsing The Firm, by Simon de la Rouviere