Frequently Asked Questions

A list of questions about DAOs that we get all the time and how we answer them.

Frequently Asked Questions

1. Are DAOs free to join?

No — but you might not have to pay very much to join a DAO.

You have to buy a DAO's token to become a member, but sometimes buying even a fraction of a token will constitute as membership.

2. Am I in a DAO after buying its token?

It depends. Some DAOs will submit a proposal to add you as a member, and then you’ll be a part of the movement.

Start getting involved in the community by joining the DAO's Discord channel and contributing to the conversations.

3. Can any member of a DAO spend funds in the DAO's wallet?

No. DAO members vote to decide how funds are spent.

Sometimes DAOs can assign specific people to sign off on transactions (called multi-signers), but even they have to agree on a transaction before it takes place.

4. Can anyone join a DAO?

Yes, as long as you can purchase the DAO's token.

Some DAOs are private and their tokens are not for sale, but the majority are permissionless.

That means that anyone who owns the DAO's token is automatically a member.

5. What is a token?

When you buy a DAO token, you (usually) become a member of that DAO.

Owning token means you co-own the assets inside, and get to vote on decisions about how funds are spent.

6. What are the benefits of a DAO?

Inclusive - anyone across the world can join and participate.

Democratic - all decisions may be decided by the community.

Transparent - every transaction to and from a DAO is public.

Permissionless - DAOs cannot be sanctioned by governments.

7. What tools do I need to join a DAO?

You'll need a wallet to sell and receive DAO tokens. For now, we use Phantom.

You'll also need a way to connect with the community. Most often, DAOs use Discord. That's where you can chat with team members and propose new ideas.

8. Do I need to be a developer to contribute to a DAO?

Not at all. Every DAO has an extended ecosystem of marketing, design, education, and community management so everyone with transferrable skills can contribute and add value.

9. How do DAOs make decisions?

Votes and proposals.

Members propose an idea to the community and everyone votes to keep it, or kill it.

Sometimes, the weight of a vote coincides with the amount of token owned. If someone owns lots of tokens, their votes might weigh more.