An exciting area of Blockchain development is the creation of Decentralized Autonomous Organizations (DAO). Before we explore the steps you can follow to create a DAO, it’s vital to understand what a DAO is. A DAO is a community-based entity without a central authority. DAOs are famous because of their transparency and application of digital contracts. The smart contracts hold the regulations, accomplish the agreed decisions, and deliver proposals. Also, voting is possible via these smart contracts.  

With knowledge of Blockchain development, you can quickly create your own DAO. However, suppose you lack knowledge of setting up a DAO. In that case, you should contact a skillful Blockchain development agency to help you. Here, explore the steps to follow to make a DAO.

What are the benefits of DAOs in blockchain development?

There are various perks to enjoy when you build a DAO. As blockchain technology keeps evolving, particular use cases of DAO will keep improving. Here are some primary advantages of setting up a DAO:

  • Decentralization: a key perk you enjoy when you create a DAO is decentralization. DAOs are designed to reap the maximum benefits of the decentralized ledger. While other blockchain development projects enjoy minimal benefits of decentralization, the situation changes when you focus on DAO. This form of governance relies entirely on collective community participation instead of individuals. In legacy organizations, the decision of the CEO and board members is final. In such organizations, the input of users, customers, and employees isn’t considered.
  • Community participation: members of a DAO fully participate in the organization by offering innovative ideas that can propel the business to new heights. All community members have a sense of ownership and may present innovative proposals to help the group.
  • Active stake of members: members earn DAO governance tokens after burning the coins to gain voting privileges. So, they have skin in the game. This means that they’re likely to be thoughtful of every vote. So, with the voting rights, members have a say in influencing the future of the DAO.

How to make a DAO

Up to now, you know the benefits to enjoy when you build a DAO. So, the next step is to understand how to create your own DAO. Here are the steps to follow:

  1.     Define your structure

The first step in DAO Blockchain development is to define your structure. Here, you need to determine the objectives of your DAO. Although DAOs have multiple benefits, they might not be appropriate for all cases. When defining your DAO structure, you must consider various things. For example, your objectives, decision-making methods, benefits for the community, and the appropriate network. Regarding network, Solana blockchain development offers the best platform to build your DAO. DAO members will benefit from a DAO on Solana because the network has a high transaction throughput, experiences low latency, and low fees.

  1.     Determine the type of DAO you need

DAOs are at the infancy stage of development, and a few types exist in the market. So, you might want to assess the available forms of DAOs to determine the model suitable for your concept. Examples of DAOs in the market are protocol DAO, social media DAOs, and collector DAOs.

DAOs can also integrate into the traditional forms of business to enhance efficiency. So, you should hire a Solana development expert to help incorporate a DAO model into your business.

  1.     Establish the application of DAO tokens

It’s essential to determine how to use DAO tokens in community governance. Ideally, the tokens support specific activities like efficient fundraising, voting, and staking. So, from the outset, it’s essential to be clear on how you want to use the tokens.

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  1.     Token distribution

You should devise a plan to distribute tokens among your community members. Also, in your token distribution strategy, you must consider how to reward the early users. An essential element to help you determine how to share tokens is the use cases of the coins.

  1.     Develop the DAO

While you can opt to create your own DAO from scratch, multiple tools and templates can help you. These technologies can assist you in delineating the legal model for the organization you want to form. Furthermore, the tools provide the necessary platform for minting DAO coins, developing your DAO name, and helping the community. Some tools to use for DAO development include syndicate, OpenLaw, Colony, and Orca Protocol. Solana blockchain development experts can benefit from the tools that the network offers.

  1.     Create a DAO treasury and society

The final phase of your DAO creation is establishing a DAO treasury and community. The treasury is a critical aspect that helps your DAO to manage funds in a secure environment. Regarding security, you can use tools like Gnosis Safe. You can use various tools for DAO treasury administration, such as Utopia and Parcel. You can also keep growing your community through multiple platforms, such as Twitter and Facebook.


The demand for DAOs has increased due to their various use cases. Here, we’ve explored the main steps to follow to create your own DAO. From analyzing the need for DAO to choosing appropriate tools, there are various steps to follow for a successful DAO creation.

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