In this article, you’ll find answers to the most common and frequently asked questions about DAO registration. If your question isn’t listed, feel free to ask in our official chat 💬 – our moderators will be happy to help and provide answers! This article will be updated as new questions from the community arise

Before diving in, we recommend checking out our brief overview article on the latest DAO registration update 📑 – it also covers many important questions.

Use the list below and simply click on the question you’re interested in to jump straight to the answer 👇🏼

Frequently Asked Questions (FAQ):

What is a DAO?

A DAO (Digital Autonomous Organization) is a new way for people to collaborate, where there are no bosses, and all decisions are made collectively

Key decisions — such as how to allocate the budget, who to bring onto the team, or how to distribute revenue — are made through voting. The rules governing the DAO are encoded in a smart contract, a self-executing piece of code on the blockchain that ensures transparency and automates decision-making

How can a DAO be used?

Imagine you and your friends want to launch a startup. In a traditional company, you’d need to register a legal entity, hire an accountant, and deal with tons of paperwork. With a DAO, the process is much simpler:

• You create a DAO and pool funds into a shared treasury
• You define ownership shares and set up decision-making rules
• You establish digital agreements that can’t be altered without collective approval
• Profits are automatically distributed based on predefined rules

A DAO is a transparent and fair way to organize joint ventures, eliminating bureaucracy and reducing the risk of fraud. DAOs can be applied to various industries, including startups, charitable foundations, gaming communities, investment clubs, content platforms, media projects, music and creative groups, joint businesses, and cooperatives

How did it work before, and what’s the essence of TONxDAO?

Creating a DAO used to require deep technical knowledge. You had to set up smart contracts, deploy an infrastructure for voting and governance, and navigate legal complexities, as DAOs had no official status in most countries. This made the process complicated and inaccessible for most users, which is why DAOs were primarily used by large corporations and investment funds