DAO stands for "Decentralized Autonomous Organization". The Nuklai DAO is the decision-making tool for NAI holders in the Nuklai ecosystem. Through Votes in the DAO, the community can let it’s voice be heard and steer Nuklai towards a bright future. Currently, the Nuklai DAO oversees decisions related to the Nuklai Community Allocation, ensuring that resources are allocated wisely and effectively. Looking ahead, the DAO may expand its capabilities, potentially taking on a wider array of responsibilities.

These actions are taken via the use of specific format proposals in the Nuklai governance platforms, Commonwealth & Snapshot.

These proposals, their votes and final results are all stored in IPFS via Snapshot, a gas-less voting client. Approved proposes are executed on the Ethereum blockchain by a committee by means of a multi-sig wallet. The Committee members will be voted in by the community, although for the first 12 months, the most turbulent and vulnerable time for the DAO, its members are selected by the Nuklai Foundation to ensure continued efficiency and sustainability.

The remainder of this document explains in greater detail what the DAO is, how it works, and what it can be used for.

For a detailed tutorial on how to use the Nuklai DAO, visit the DAO User Guide.

The DAO is powered by smart contracts

DAOs, or decentralized autonomous organizations, are part of a new approach to organizational management and decision making made possible by blockchain.

Blockchains such as Ethereum extended what’s possible with blockchain technology by adding the ability to decentralize the handling of data more complex than just records of token ownership. Ethereum did this by allowing people to put smart contracts on a blockchain.

What’s a smart contract?

A smart contract is a computer program that is run on a blockchain, usually Ethereum. It can store both functions (bits of code that do things) and data (information). Smart contracts are often compared to vending machines. If you put in specific inputs, you get specific outputs. If I walk up to a vending machine, insert $1, and press the “orange soda” button, then I’ll get an orange soda if there’s any left in the machine. If there’s no more orange sodas, I’ll get my dollar back.

Smart contracts work the same way, people can interact with them by sending information with the expectation of receiving specific results or information. Just like the vending machine doesn’t have a little person inside handing out sodas, smart contracts are automatic (dare we say, autonomous).

If you’d like to learn more about Ethereum smart contracts, the Ethereum documentation is the best place to dive in.