DAO (decentralized autonomous organization)

How to Create a DAO in 10 Easy Steps

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DAOs, which have their roots in decentralization, are a prominent governance model in the blockchain realm. By establishing a DAO in which network users may freely vote, you can bring your project closer to the essence of blockchain technology — decentralization. As a result, understanding how to construct a DAO will be precious for any blockchain developer who wishes to succeed.

Today, we’ll look at DAOs, which are an excellent decentralization method. By the end of this post, you should understand what a DAO is and how to create one.

The Definition of DAO

Before you can learn how to build a DAO, you must first understand it. A decentralized autonomous organization (DAO) allows groups of people with common interests (companies, non-profits, and so on) to manage their organization without a hierarchical authority figure. Members of the DAO may collaborate and manage the organization in total transparency.

Anyone can be a member of a DAO. After purchasing a little amount of its native currency, you will become a full member.

The laws of the organization are stored in a transparent computer program, and members may control the code without fear of outsiders affecting it. This autonomy distinguishes DAOs from traditional corporations and makes them an appealing business model.

The Differences Between Traditional Organizations and Decentralized Autonomous Organizations (DAOs)



It is organized hierarchically. It has no hierarchy and is entirely democratic.
A person or business with power can make a change A majority must approve a modification of the group members.


The voting is done manually and internally.


Without the assistance of any central authority, voting is carried out automatically.


It is usually secluded and concentrated.


It is decentralized and open to the public.


How to Create A DAO in 10 Easy Steps?

So, how to create one?

DAOs are not like traditional organizations in any way. They work on a unique paradigm that may sound a little far-fetched, yet many DAOs are now operational and profitable.

While the notion of a DAO is complex, creating one does not need to require much time or effort. Furthermore, using an application like Moralis, you can quickly make sophisticated tools that extend the capabilities of your DAO.

Aragon is a popular option for decentralized autonomous groups. The following stages will walk you through creating a DAO on Aragon.

Step 1: Set Up Your Crypto Wallet

Create a Crypto wallet as a first step. It is necessary to have it

to pay the initial setup expenses. When it comes to this kind of transaction, Metamask is the most convenient choice.

Step 2: Go Over To Aragon

Head over to Aragon and click on the Create Your DAO button when you get there. It will lead you to the welcome page, where you will either create an organization from scratch or open an organization that already exists.

Step 3: Connect Aragon to Metamask or another cryptocurrency wallet

Link Aragon to Metamask or your Crypto wallet. If you have connections to other networks using the same wallet, you must use the Ethereum Mainnet.

Step 4: Fund Your Crypto Wallet

You should add at least 0.3 ether to your cryptocurrency wallet. To initiate the creation of a DAO, you will require a bit more than 0.2 ETH.

Step 5: Create an Organization

Choose your preferred layout after clicking the “Create an Organization” button. Your decision won’t affect your DAO, except for “Open Enterprise,” a hub for decentralized applications (Dapps).

Step 6: Enter Your DAO Name

You will be prompted to give your DAO a name.

Step 7: Configure Your Organization

You must now configure your organization. “Minimal Approval Percentage” and “Vote Duration” are examples. The ideal vote percentage setting is 50 percent approval. It implies that for a proposition to pass, over 50% of token holders must approve it. You can, however, change these numbers to suit your needs.

Step 8: Set Up A Native Token

For your DAO, set up a native token. Give it whatever name you like and make a sign for it. In the same procedure, you can distribute tokens to DAO members.

Step 9: Confirm the Transaction

To create a DAO, confirm or accept the transaction on your cryptocurrency wallet.

Step 10: Submit your First Proposal Question

Once your organization is up and running, submit the first proposal question. Token holders then will vote on whether or not to support the issue.

What is the Purpose of a DAO?

Why would anyone want to set up a DAO? What does it have to do with dApps or blockchain projects? There are several factors why you should set up a DAO. DAOs may be used in various settings, scenarios, and protocols.

DAOs in DeFi, for instance, can assist develop confidence by allowing users to participate in protocol modifications. Developers can submit new protocol modifications, but holders can agree on whether or not they should adopt the changes to gain confidence. Lending platforms, dApps that pay interest, and decentralized exchanges are examples of DeFi DAO applications (DEXs).

The DAO landscape of today is very different from that of the earlier days. Protocol DAOs, social DAOs, and others are all parts of it. Also, you can find DAO operations systems like Aragon,  DaoStack, and many others that have a significant impact on the ecosystem. There are also DAOs for grants and DAOs for the media. Collector DAOs are essential if you are interested in NFT dApps or NFT portals.

DAOs are valuable tools for organizing communities, especially when the members are mostly anonymous. There is usually no accountability for one’s genuine identity, and you must rely on strangers. A DAO enables people to develop a strategic plan using technology that ensures integrity. It is also less complicated than establishing a regular corporation or business because many projects include worldwide teams. Finally, for its utility in organizing individuals, a DAO is a low-cost alternative. You may set it up for free or for a nominal cost.

Final Words

Any developer would benefit from learning how to set up a DAO, especially because decentralization is the focus of governance systems. After you’ve mastered the use cases for Solidity smart contracts, you may utilize them to decentralize your new dApp further.

Creating a DAO would generally take far longer, given the back-end requirements of installing your blockchain servers. On the other hand, Moralis can minimize development time to as little as 10 minutes when using its rapid server setup features and other intriguing features that will allow users to connect to several blockchains.

Indeed, it’ll be fascinating to observe how prevalent DAOs develop and how they assist in organizing the commercial environment as time goes on.

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