How is a DAO different from a normal LLC?

A normal LLC is managed by one or more human owners called "members". These members make all business decisions and have final say on all business matters.

A DAO LLC, on the other hand, is typically managed by algorithms through smart contracts, though it can also include human members with voting rights. Instead of a small group of owners making decisions, a DAO operates based on rules encoded in blockchain technology.

Key differences:

• Traditional LLC: Centralized decision-making by designated members or managers
  • DAO LLC: Decentralized decision-making through smart contracts and community voting
• Traditional LLC: Operating agreement governs operations
  • DAO LLC: Smart contracts and operating agreement govern operations
• Traditional LLC: Changes require member votes and paperwork
  • DAO LLC: Changes execute automatically when conditions in smart contracts are met

Both structures offer limited liability protection, but DAOs provide more transparency and community-driven governance.

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