DAO Concept and Basic Terms

A simple introduction for all program participants – no technical background required.

1. Why DAO?

Many online communities today gather in Facebook groups, Discord servers, or Telegram channels. These spaces can organize discussions or small group decisions through informal polls and chat.

However, when a community wants to go further — such as launching projects, managing budgets, or making shared decisions transparently — those tools fall short.

That’s where a DAO (Decentralized Autonomous Organization) becomes useful.

A DAO is a community with shared goals, where members propose, vote, and execute actions transparently and fairly, with help from blockchain-based tools.

In this program, we use a platform called XDAO to help each community function as a DAO. It ensures fairness (no hidden admin control), accountability (actions are recorded), and shared ownership (everyone has a voice).

2. What is GT?

GT stands for Governance Token.

• In a DAO, GT represents your voting power.
• If you hold 1 GT, you have 1 vote in any decision.
• If someone holds 2 GT, they have 2 votes — but in this program, every member gets 1 GT, so all voting power is equal.

DAO decisions such as adding or removing members are done by minting or burning GTs.

• Add Member vote = Mint 1 GT → Send to new member's wallet
• Remove Member vote = Burn GT → From the wallet of the inactive or removed member

3. What is a Proposal and What Is Quorum?

A Proposal is how DAO members make decisions together.

Want to start a project? Request funding? Share a story? You submit a proposal. Other members vote Yes or No.

For a proposal to pass, it must meet the required quorum.

Quorum means: the minimum percentage of total votes required for the decision to be valid.

• Example: If quorum is 60%, and your DAO has 10 members, then at least 6 members must vote Yes.
• If a proposal gets less than 60% participation or support, it fails — even if no one voted No.

Quorum helps prevent silent decisions. Everyone has a voice — and is expected to use it.

Note: The quorum level can be adjusted through a DAO-wide vote.