Blockchain Development: 6 Unfussy Steps To Follow When Creating A Decentralized Autonomous Organization (DAO)

Blockchain Development
Focused software developer writing code on laptop looking at multiple screens with programming language is interrupted by colleague coder asking for advice. Programmers doing online cloud computing.

DAO creation is an innovative idea in Blockchain development. The concept has attracted much attention because it eliminates the need for a central governing authority. Instead, members create a DAO and operate it with complete openness. The rules of a DAO are encoded into a smart contract when setting up a DAO. This means that DAOs don’t allow outside interference but follow the rules encoded in the computer program. Here, we explore the main steps to follow when setting up a DAO.

Why DAOs are popular in Blockchain development

Before exploring the steps to follow to make a DAO, it’s critical to understand why the model has become popular with many entrepreneurs. Here are the main perks of DAO Blockchain development:

  • Operation is through intelligent contracts: unlike the legacy organizations that depend on particular leaders, DAOs are run through smart contracts. This eliminates the possibility of specific individuals controlling the organization. Also, members can make their decisions promptly and in an open manner.
  • Enhances trust and openness: Developers make a DAO on the blockchain network. For example, a Solana development can help you build a DAO on Solana. The Solana blockchain development has multiple benefits, such as low gas fees. A Blockchain network where you build a DAO is unalterable, promoting the idea of transparency. Thus, changing the organization’s rules is impossible without a majority vote. Therefore, a DAO exists to advance the interests of a community.
  • Group participation: in a DAO, each community member can play an active role and offer innovative ideas to take the business to the next level.

Steps of DAO creation

Here are the key steps to follow when setting up a DAO:

  1. Have a mission statement and clear objectives

Entrepreneurs need to have a mission statement and goals like any other business. This step is vital as it determines how to operate the DAO. You’ll appeal to many potential users if you strive to be transparent at this point.

It’s critical to make sure that the DAO objectives you create are authentic and achievable. Also, ensure that your business has precise steps that DAO members must take in case the organization requires changes.

  1. Create a DAO community

Perhaps this is one of the challenging steps. Firstly, you must determine whether the DAO you want to build is small or large. Also, it would help if you decided whether you require a public or a private community. So, you should be referring to your mission statement and objectives when handling this section.

If you aim to make a DAO with multiple members, you’ll need to put much effort into expanding your group. However, if your DAO is limited, you’ll need to determine whom to join. Some platforms to find an audience include social media and chat channels like Discord.

  1. Use community tools

Various community tools can help you find members of your group. Also, the devices can help you to inform your members about their multiple responsibilities, such as voting. Platforms like Discord and Telegram can help you meet the DAO’s various responsibilities. For example, Discord allows managers to determine those to join the group. Thus, the tool can help remove the possibility of outsiders knowing about your organization.

  1. Create financial objectives

An essential aspect when you build a DAO is the treasury. This element helps your group use the funds to meet the community’s goals. So, it would help if you thought about restructuring it to achieve your goals. Suffice to say, the structure of your treasury depends on the type of DAO you build. 

  1. Determine DAO governance

DAO members get involved in conversations and offer proposals that impact the organization’s expansion. The suggestions that DAO members forward must be subjected to a vote. A DAO has two primary forms of governance: formal and delegated.

In formal governance, community members make decisions through a vote. Here are the steps for this governance flow:

  • Conversations on enterprise-related matters: the discussions can happen via chatting and video calls.
  • Soft Consensus: community members reach a soft agreement via proposals.
  • Hard Consensus: this happens via a token poll.
  • Execution of proposals: if proposals are passed, they’re executed.

On the other hand, a DAO can adopt delegated governance. Here, the group grants specific responsibilities to a team of individuals who work on behalf of the enterprise. The community only intervenes when there’s a critical step to take.

  1. How to determine ownership

In DAO Blockchain development, you distribute ownership to the organization based on how individuals vote. Voting allows members to make essential decisions about the business. You can allot membership in NFTs (ERC-20) and DAO native tokens.


An essential step in Blockchain development is the creation of DAO. These enterprises depend on community members’ decisions instead of a centralized authority. DAOs have multiple benefits, such as the use of intelligent contracts and the enhancement of community participation. Here, we’ve explored the steps of DAO Blockchain development.