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When investors grew tired of traditional yet complex hierarchical platforms, the DAO, or Decentralized Autonomous Organization, emerged as a solution for decentralized finance. For transparent, trustworthy, and immutable decision-making for DeFi platforms, the concept of DAO was created in the year 2016. A DAO will give access for crypto users all around the world to provide insights for reward contributions, new feature integration, and automated governance.
As the need and demand for DAOs have risen among users, many startups have now started to see the launch of DAOs as a successful business model. Yet, they are bombarded with numerous queries like,
How to launch a DAO? How to proceed with the deployment of DAO in the market? And many more.
Don’t worry, this blog will convey all the ins and outs of launching a DAO without any technical errors or bugs. But, before that, let’s get started with…
What is a DAO & How Does it Work?
DAOs or Decentralized Autonomous Organizations are powered by blockchain technologies where governance, DeFi voting, and decision-making are done through members without any central authority. All the DeFi actions that include fund allocation, protocol modification, and proposal approval are executed by the blockchain.
If you are still confused about the DAO mechanism, let’s get a detailed breakdown of the working process.
Working Process of a DAO:
The DAO works seamlessly with a potential smart contract, blockchain, and community governance, unlike centralized exchanges.
- Smart contract functioning – The conditions, core logic, and DAO workflows for the smart contracts are pre-defined. Once the smart contract is deployed, it cannot be altered or modified.
- DAO Token Issuance – DeFi users of the platform can get access to voting with these DAO governance tokens. The DAO tokens are distributed through ICOs, Airdrops, rewards, etc.
- Proposal Creation – Any member who is eligible as per the DAO community guidelines can create proposals. Those proposals acts as a valuable suggestion for fund allocation, new feature integration, governance modules, etc.
- Voting – If the proposal is approved by the DAO members, then they live within the platform for voting. With the DAO tokens, DeFi users can approve or reject the proposal through the DeFi voting process.
- Voting Process – Each governance token is considered as a single token. The voting process is recorded by the respective blockchain, which is immutable and transparent.
- Execution – If the proposal is approved, then the required proposal is automatically executed by the DAO smart contracts. Without any central authority, the voting process is conducted smoothly without any technical hassles by blockchain.
This is how a DAO works with the help of DeFi smart contracts by maintaining transparency and immutability. Due to its decentralized yet high-security nature, many startups have turned their heads to create DAOs. If you are still not convinced about it, then let’s have a fact-check.
Why Do DAOs Matter in the Future of Decentralized Governance?
As per the reports of DeepDAO, the global DAO total treasury is estimated at 18.4 billion USD with $16B in liquidity and $2.4B in vesting. Also, a total number of 11.8 million crypto users are holding worldwide DAO tokens that offer perks like voting, proposal-making, etc. This rapid leap has been achieved within a few years of launch.
From this report, it is evident that DAOs will play a major role in the future and evolution of decentralized finance. Without huge investments, startups can build their community by launching a DAO. Anyone from anywhere can vote, join, and contribute to the DeFi platforms without restrictions.
DAOs offer visionary founders a powerful alternative to traditional corporate structures that are designed with complexity. Apart from this, if you want to know more about the business perks of launching a DAO, then scroll down…
Top Reasons to Launch a DAO for Your Business
The web3 digital landscape is evolving day by day, with DAOs offering a lot of benefits for users. On the other hand, it is also offering a lot of business benefits for startups that are launching a DAO. Some of them have been listed below,
Permissionless Operations
Without any central authority or third-party intermediary, crypto users can make their proposals for the DeFi platform’s feature integrations. This helps to reduce delayed responses or late decision-making.
Increased transparency
Every translation, proposals, voting, etc, are recorded by the blockchain technology, which ensures transparency. Also, the recorded data of the blockchain or smart contract is not immutable. This helps startups to build trust and raise funds from crypto users easily.
Cost-Effective module
Unlike other crypto-based business models, launching a DAO is much affordable for newbie startups. As the DAOs are automatically operated, the administrative costs can be reduced by half without compromising the quality.
Scalable Across Industries
The modular architecture of the DAO makes it highly scalable for future growth. Regardless of the industry or sector, they can be modified or customized with relevant features and high-end security protocols.
Through these business perks, you can now get to know the business perks of launching a DAO. As we have gotten to know the ground concept, it is the right time to jump to the main query of ‘How to launch a DAO?’ In the next section, we have enlisted the technical yet professional steps to launch a DAO.
How to Launch A DAO in 2025?
Building a DAO is not a daunting task unless you have technical and well-experienced DAO developers by your side. Here, we have managed to break down the whole process of ‘how to launch a DAO’ into simple phases. This helps you in framing the project, budget, and time constraints.
Step 1: Project Preparation
The foremost step in creating a DAO is deciding the core factors of framing the project needs, user trends, market analysis, etc. In this phase, make sure to have a detailed insight regarding the governance model, voting guidelines, and proposals. This is where you have to prepare the roadmap for the duration and the cost budgeting of the DAO project.
Step 2: Choice Of DAO
Once you are clear with the project preparation, then you have to go through the types of DAOs that are launched. Presently, some of the popular DAOs are as follows,
- Protocol DAO – These kinds of DAOs create and distribute DAO tokens through rewards. The token holders can utilize these tokens for voting and propose for decision-making. Startups that tend to create decentralized exchanges, DeFi yield farming platforms, etc usually create these kinds of DAOs.
- Investment DAO – The investment DAO platform helps investors to conduct token sales to raise funds, evaluate new DeFi opportunities, etc. Mostly, the voting is conducted to enhance due diligence and investment decisions.
- Grant DAO – These DAOs are conducted primarily for token holders or elected committees to vote on which initiatives deserve support. The treasury is utilized for public goods, funds, etc.
- Social DAO – Social DAOs thrive on identity, access, and interaction. Members may need to hold a token or NFT to join. These DAOs often organize events, content creation, and collaborations.
Choose the right type of DAO that suits your business vision and requirements. Also, seek guidance from a reputed DAO development company.
Step 3: Collaborate With a Technical Partner
Once after choosing the type of DAO, you can proceed with the creation process. To create a seamless interface, you have to get support from a DAO Blockchain development company that has skilled developers. They would help you in framing a better dashboard for DAO proposals, voting, and smart contract governance.
Step 4: Set Up Treasury
Your DAO’s treasury is the backbone of community-funded operations. It holds the assets (crypto tokens, stablecoins, etc.) used for paying, contributing, and managing long-term reserves.
Most DAOs use tools like Gnosis Safe or multi-signature wallets to secure funds. You can also automate treasury disbursements through smart contracts, tying them to approved proposals or milestones.
Step 5: On-Board The Community
Once you have completed the process, you can then onboard the DAO for your crypto community. You can seek attention from global users through promotions, marketing, setting up community spaces, etc.
These are the common steps that have been followed to launch a DAO with the help of a DAO development team. As you have got the development process details, now let’s get the information about the pricings.
How Much Does It Cost To Build A DAO?
The average cost to launch a DAO may range from $15,000 to $30,000. Yet, the price may vary based on numerous factors like the potential of the development team, project complexity, feature integration, etc. Apart from these, some other factors that influence the overall cost estimation are,
- Smart contract auditing
- Security Mechanism Modification
- DAO Frameworks
- Community Building
- Legal & regulatory compliance
Before getting involved in the development phase, get a detailed consultation from an experienced team. Through that, you can eliminate the unnecessary costs with the guidance of a reputed DAO development company to create a DAO without any technical hassles.
Don’t search for a reputed company because Pixel Web Solutions is there to hear you out for creating your DAO.
Why Choose Pixel Web Solutions For Launching DAO?
Pixel Web Solutions is well-known for offering enriched DAO development services that fit the pocket of newbie startups. As we have delivered nearly 350+ crypto projects, our developers have enough experience and expertise in launching DAOs without any compromises.
Our development team is also an expert in offering other DeFi development services like DEX development, DeFi wallet creation, etc. With 12+ years in the competitive crypto market, we are providing various crypto-based application development across industries and countries. We utilize a high-tech stack to make your platform stand out from your competitors. Connect with our development team to get an actual demo and cost quotation to launch your DAO!!
Disclaimer
The cost estimation that has been provided in the above blog is only for informational purposes, and it does not represent any actual quotation of Pixel Web Solutions. The above-mentioned cost values may vary based on your crypto project requirements and services selection. Also, the details are not official cost disclosures for any services or products. We would like to let you know that the users can directly connect our business team to get a clear quotation!!
