DAOs form an instituion. The study of instiutional economics aims to understand the role of formal or informal institutions in an socio-economic context. 

New York University

Decentralized Autonomous Organizations (DAOs) are decentralized online organizations whose members have the ability to collectively decide how the organization should allocate its funds. They use blockchain technology to enable members to vote on the organization's decisions rather than relying on a traditional hierarchical structure. 

Decentralized Autonomous Organizations (DAOs)

Voshmgir, S. (2020). Token Economy: How the Web3 reinvents the Internet (Token Economy: How the Web3 reinvents the internet (English original & foreign language translations)) (Second ed.). Shermin Voshmgir, BlockchainHub Berlin.

Token Economy: How the Web3 is Reinventing the Internet

Smart contracts can determine the terms and conditions of all transactions on the chain. The chain can also use data from users to validate transactions. This helps lower transaction fees and helps prevent fraud. Lastly, the project will operate on a decentralized autonomous organization (DAO) to help with stability and mutability. 


Market Rights on Cardano

Technologies such as DAOs pose an incredible opportunity for building and sharing music. Artists can form DAOs around their bands, creating tighter-knit communities of hardcore followers that they can call upon for help. The distance between the supporters and the artists becomes significantly smaller and artists are able, on one distinct platform, to interact with their most committed and excited fans.

Community Building on Blockchain in the Music Industry

Juicebox is a business-model-as-a-service and programmable treasury for community-owned Ethereum projects. The Juicebox protocol constructs and maintains the financials (treasury) for other Ethereum communities. 

Juicebox DAO

- Percentage of total funds
- Equal share

Different DAO models

Institutional Economics of DAOs

Monetary and Fiscal Policy of DAOs

Governance of DAOs

Forks are needed when the network requires of major or technical upgrades, the ones which changes the rules of the protocol. The fork can also be used to:
- Fix bugs
- Make changes
- Changes of the governance structure of the DAO

It's like a software fork, where developers create a new version of the software, but in this case applied on a decentralized network.

Once the Fork is made clients must update their software to implement the new fork rules

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