DAO: The Future Of Work

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With a major shift in the technology and working environment around the world, it is possible that in the future people might stop working for the corporate sectors and companies. Instead of working in a traditional office environment, people will adopt working in a manner where they take voluntary actions like investing, gaming, learning skills, creating artistic pieces and developing content.

People will become self-sustainable by making a huge shift in the working mechanism. They will earn by themselves without being controlled by any authority. These types of futuristic working environments are being developed on various networks. These are the networks that are powered by Blockchain.

A self-sustainable work environment opens up new potential for individuals and helps them grow beyond traditional work mode. The traditional office culture is majorly all about ‘work-to-earn.’ But the futuristic work scenario will be about generating income sources through a person’s voluntary actions and activities. Work models like ‘learn-to-earn’, ‘create-to-earn’, ‘play-to-earn’, ‘contribute-to-earn’ will take the lead. All ready these work models are coming into action. Like Social media influencers earn simply by contributing to a network, Axie Infinity players earn by playing games.

However, for flourishing such work models, we will need Decentralized Autonomous Organizations (DAO). DAOs will coordinate all the actions of a person outside the corporate realm, and they have innumerable opportunities available for people to explore and earn. This will also add up to the diversity of a DAO’s functions. A decentralized autonomous organization is a system based on the internet and blockchain protocols, and its fundamental features are automated using smart contracts. Let’s further unfold the concept of DAO in this article.

What are DAOs?

A decentralized autonomous organization (DAO) is a work platform based on open-source codes. It is automated and self-sustainable in nature. In order to be completely decentralized, DAO was unaffiliated with any specific nation-state or authority, but it used the Ethereum network initially. A DAO is communitarian at its core. The diverse group of individuals in DAO get along on the basis of bylaws encoded on the blockchain.

Mostly blockchain networks and smart contract-based decentralized applications are supported by DAOs. In a decentralized autonomous organization, there is no central authority. Instead of central power, DAO works on the basis of its members’ proposals. Each node can voluntarily vote for each proposal. These proposals are made by the members of the DAO if they get support from the majority of the nodes and are adopted and implemented by the rules coded inside the smart contract. Hence, smart contracts are the foundation of DAOs, giving rules and executing the actions agreed upon by the different members of the DAO.

To understand DAOs in a better way, let’s think of them as an internet-based business that’s owned and managed by a community of diverse people. They have treasuries embedded in the DAOs and no other person outside of the community will have access to it without their permission. DAOs do not work on a hierarchical basis, and there is no CEO to validate and verify the decisions in a DAO. Smart contracts, distributed ledger accounting and Cryptocurrencies are utilized to maintain the decentralization and governance in a DAO.

What is the purpose of a DAO?

Establishing an organization with someone involves huge funding and trust to work with the people. But to do the same over the internet is much more difficult. Trusting, communicating, and working with a person virtually via the internet is hard. On the other hand, you do not need to trust anybody in a DAO. Everything happens based on DAO’s code which makes it fully autonomous. This code is absolutely transparent and verifiable by any member of the DAO. Thus, the purpose of DAO is to provide a self-sustainable working platform with no central authority.

The self-sustainable attribute of DAO opens up new potentials for global collaboration. It increases diversity in the modes of earning as people can do voluntary action to earn. The structure of DAO is fundamentally open and accountable, by default sharing value with its members who form it. They reward their members and serve as the ownership economy. DAOs have emerged as dynamic platforms with ‘x-to-earn’ model at their foundation. X here stands for the infinite possibilities that people come up with and then use them to earn.

DAOs as open economies will promote the x-to-earn trend, making work super flexible. The open nature of these crypto-based economies will help people mix and match different income modes. People will earn based on their daily life activities like playing games, investing, learning a new skill, etc.

What are the fundamental benefits of DAO?

There are three fundamental benefits of DAO as mentioned below:


The biggest benefit of DAO is that it is trustless in nature. While working in a DAO, you do not have to trust any CEO, manager or leader with your decision-making. The program or the whole organization will continue no matter if a major developer stops working on the project or even if the funding stops coming. DAO is not dependent on any single person; instead, it works dynamically and collectively with the individual interests of its members.

No shutdown

Another benefit is that there cannot be a shutdown in DAO. If any of the major government organizations like the FBI, CIA or any other government body intervenes, DAO will never stop working. It is not entitled to give any information to any of these government organizations. In the DAO, if any of these organizations want any information, they should have a large number of tokens. Then they will be submitting a proposal to vote, and this proposal must be agreed upon by the members of DAO. In other words, no authority, government or any normal person can cross the line of the proposal and vote in DAO. Hence, it cannot be shut down randomly on anybody’s order.


DAO is an open-source platform which means that its code is out there, and this makes it possible for people to engage on DAO to work and improve the platform. Open-source platforms are much more reliable because worldwide developers help x them. This way, DAO’s mechanism gets improved with fair involvement and transparency from all the participants.

Who are the core contributors of DAO?


These are the employees who work full-time on a project in an organization. The need for specialized and embedded employees will never go away, but in web3, this group will be considerably fewer than in the past. Small groups of individuals can have outsized influence due to software and smart contracts to a greater extent. DAOs are more accessible than companies as a wider community of people work together on DAO in an autonomous way.


People who are frequently functional specialists in fields like finance, engineering, and designing give services to a large number of DAOs at once and do specified tasks with defined bounds. They freely contribute to DAOs to profit from their actions and activities. It ensures decentralization and prevents huge hierarchies.


Increased activity and participation strengthen the networks. However, In the Web 2.0 setup, users, customers, and participants have been providing value to networks without gaining a proper share of their value for years (for instance, app developers for Apple and creators for YouTube). Their value gets decided by centralized authority, whose primary objective is personal profits. So the reward distribution models are not very lucrative for contributors and mainly cater to the personal interest of the centralized authorities.

DAOs, which operate more like open economies than closed organizations, will reward individual contributions based on the value they bring, independent of who makes them. This means that ordinary behaviors that are beneficial to a network will be converted into revenue-generating possibilities. Almost everyone will make money just by living their life online, purchasing items, and contributing as a user.


Play-to-earn is a revolutionary gaming concept that compensates players for participating in and succeeding in a game. Traditional gaming models entail a one-sided exchange of value to game producers or platforms, but play-to-earn games reward both players and game developers. Play-to-earn games serve as a form of economics: Players are rewarded for their work (their time and efforts) and capital (frequently purchasing NFTs to play the game).


Learn-to-earn is a revolutionary education approach in which a person gets reimbursed for proving that they have learned something rather than paying to learn. This is achievable when the skill, learning, or knowledge that a person learns gives value to a network, and the network is prepared to subsidize the learning as a result.


Anyone with an internet connection and a crypto wallet will be able to invest in high-growth enterprises. Every single individual becomes an investor in a future where every network has a token. Tokens are earned for engaging in networks, and the ability to acquire tokens is permissionless. Investments will become a key source of income for a growing proportion of the population.

How does a DAO operate?

A DAO’s smart contract serves as its foundation. The contract establishes the organization’s norms. Once the contract is live on Blockchain, only a vote may modify the rules. If somebody tries to alter what is not addressed by the code’s rules and reasoning, it will fail. Because the treasury is also established by the smart contract, no one is allowed to spend the money alone without the group’s agreement.

DAOs, as a result, do not require a centralized authority. Instead, the group takes choices collectively, and transactions are automatically allowed when votes are passed. This is feasible because smart contracts on Blockchain are tamper-proof once they go live. Because everything is public, you cannot unilaterally change the code (the DAO’s rules) without everybody noticing.

How do NFT and DAO co-exist?

DAOs are governing communities, while NFTs are digital unique assets. Creators build NFTs in the collective NFT – DAO and DAOs manage their life cycles. Because it is a collective, the NFT will be sold to the DAO after it has been made by the artist. The DAO will generate its own money (from the treasury) and trade it for NFTs. The NFTs will be used to back (as collateral) the tokens that are being issued.

The token will have value if the NFTs do. As a result, the DAO can trade the NFTs to compensate stakeholders in the event of a liquidity event. This approach guarantees that the tokens retain their worth throughout time.

The token’s value is determined by the NFT, and the token provides the DAO a voice in governance. The tokens issued by the DAO have both monetary and utilitarian value. The DAO’s independent link provides the functionality. Token holders may vote and make choices with their tokens. The DAO tokens are useful in this way.

How can LeewayHertz integrate DAO into your organization?

Smart contracts

We build smart contracts which specify the terms and codes for the functioning of your DAO. These smart contracts cannot be modified by anybody. This secures the DAO and makes it run as per the decided rules of the DAO community.

Node development

We develop nodes for voting on the DAO platform. You can use these nodes to validate your decisions on DAO and move ahead with your voluntary activities to earn in a self-sustainable way.

dApp development

We build robust dApps like crypto wallets for DAO users to earn and access trading on DAO. With the dApps, users can engage in multiple activities in an autonomous way.

Wrapping Up

A DAO has several advantages, including the fact that it is self-contained, does not require leadership, and provides objective clarity and predictability because everything is regulated by a smart contract. Any modifications must be voted on by the entire group, which seldom happens in practice. DAOs are also incredibly transparent, as everything is recorded, and votes, proposals, and even the code can be audited. Thus, DAO is the epitome of self-sustainability in work compared to the traditional work environment.

For more guidance and development related to DAO, connect with our experts.

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Author’s Bio

Akash Takyar
Akash Takyar
CEO LeewayHertz
Akash Takyar is the founder and CEO at LeewayHertz. The experience of building over 100+ platforms for startups and enterprises allows Akash to rapidly architect and design solutions that are scalable and beautiful.
Akash's ability to build enterprise-grade technology solutions has attracted over 30 Fortune 500 companies, including Siemens, 3M, P&G and Hershey’s. Akash is an early adopter of new technology, a passionate technology enthusiast, and an investor in AI and IoT startups.

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