DAOs are decentralised digital companies that typically exist as a set of contracts on the Ethereum blockchain network. DAOs mostly fall into one of two general categories: Those that manage open source, blockchain-based projects together and those that make investments. They can act similar to limited liability companies.
Traditional organisations typically have a hierarchy — formal board of directors, executives or upper management that determine the structure and have the power to make changes. DAOs, on the other hand, are decentralised, which means they are not governed by one person or entity. The rules and governance of each DAO is coded in smart contracts on the blockchain and cannot be changed unless voted upon by the DAO’s members. Instead of a select few having the majority of say, members of each DAO can vote on decisions together, typically on equal footing.
Milliard Capital has invested in a number of DAO tokens that have yielded three-digit return in the past year. The following tokens make up a substantial part of our portfolio – UniSwap (UNI), Compound (COMP), Curve DAO Token (CVR) and 0x (ZRX).
