How to Get Started and Join a DAO: Comprehensive Insights into Web3 Communities

Web3 Communities: What Are DAOs?

A DAO (Decentralized Autonomous Organization) is a cutting-edge organizational model built on blockchain technology. Unlike traditional centralized organizations, DAOs have no designated administrators or central authorities. Instead, every member can participate equally in the decision-making process—a core feature that sets DAOs apart.

This model leverages blockchain’s transparency and immutability. All transaction records and governance procedures are published on-chain, making them freely accessible for anyone to verify. As a result, DAOs guarantee a degree of transparency and fairness that’s difficult to replicate in conventional organizations.

DAOs typically exhibit four key characteristics:

1. Decentralized Management

In a DAO, no individual or group controls the organization; authority is distributed among all participants. By holding governance tokens, anyone can take part in operations, submit proposals, and vote. This prevents unilateral decisions by a select few and ensures democratic governance.

2. Complete Transparency

All transaction records and governance decisions are permanently stored on the blockchain, allowing anyone to audit them. Budget allocations and voting outcomes are openly published, making external audits straightforward. This transparency helps prevent fraud or misuse of funds and strengthens trust among members.

3. Advanced Fairness

DAOs are structured so all members have an equal opportunity to participate in decisions, preventing any individual or group from wielding excessive influence. Voting rights are allocated based on governance token holdings, allowing everyone’s opinions to be represented fairly. This design eliminates minority control and supports true democratic operations.

4. Autonomous Operation

DAOs use smart contracts—self-executing programs—so that actions occur automatically once predetermined conditions are met. This minimizes human intervention and enables efficient, highly transparent operations. Smart contracts are immutable and, once deployed, function autonomously.

DAOs have broad applications, including investment fund management, group purchasing platforms, and support for creative projects. Businesses are increasingly adopting DAO concepts as well. For instance, Mitsui Sumitomo Insurance recently launched a DAO-based hiring process to enhance transparency in recruitment standards. DAOs have the potential to fundamentally reshape organizational management.

Getting Started: How to Join a DAO

Joining a DAO involves several preparatory steps. Here’s a detailed, beginner-friendly guide to the process:

Step 1: Open a Cryptocurrency Exchange Account

The first step is to create an account with a crypto exchange. Acquire base currencies like Bitcoin or Ethereum on a major domestic exchange, transfer those assets to an overseas exchange, and purchase governance tokens that provide DAO voting rights. bitFlyer and Coincheck are popular choices in Japan.

Account creation requires identity verification (such as a driver’s license or My Number card), and approval typically takes several days. Once verified, you can transfer yen via bank deposit or credit card to purchase crypto assets.

Step 2: Set Up a MetaMask Wallet

MetaMask is one of the most widely used wallets for the Ethereum blockchain, available as a Chrome extension or mobile app. Here’s how to set it up:

• Install or Download: Install MetaMask from the Chrome Web Store or the iOS/Android app stores. Always download from the official site.

• Create a Wallet: Once installed, create a new wallet. You’ll receive a 12-word seed phrase (recovery phrase). Keep this phrase secret and store it securely—if you lose it, you’ll lose access to your wallet's assets.

• Transfer Funds: Send Ethereum purchased on your domestic exchange to your MetaMask wallet address, which can be found inside the app. Transfers generally take a few to several dozen minutes.

Step 3: Purchase Governance Tokens

Use your transferred crypto on an overseas exchange to buy the governance tokens of your target DAO. Some exchanges may require you to first swap for stablecoins like USDT or USDC.

Governance tokens grant voting rights within the DAO. The more tokens you hold, the greater your influence. After purchase, send the tokens to your MetaMask wallet for safekeeping.

Step 4: Join the DAO Community

After acquiring governance tokens, join the DAO’s community. Most DAOs use Discord as their communication platform, where you can interact with members, track project progress, and vote on proposals.

Always obtain a Discord invitation link from the DAO’s official website to avoid scams redirecting you to fake communities. Engaging actively in discussions and contributing to projects will deepen your participation in DAO activities.

DAO Pros and Cons

DAOs offer numerous benefits, but there are also important drawbacks. Carefully weigh these factors before participating.

Advantages

1. Rapid Access to the Latest Information

DAO communities give members early access to cutting-edge news on Web3 and blockchain. DAOs have a culture of active information sharing, with real-time discussions about new projects, technologies, and investment opportunities. This information edge is a significant advantage in the Web3 space.

2. Extensive Networking Opportunities

DAOs attract members from around the world with diverse backgrounds—developers, designers, marketers, investors, and more. You can exchange information, build partnerships, and create new business or collaboration opportunities through these networks.

3. New Work Opportunities

Active participation and contributions in a DAO can earn you job offers or project roles. In Web3, your track record in DAOs serves as a valuable portfolio. In recent years, more people have secured formal positions or freelance work through their DAO activity.

4. Exceptional Transparency

With all transactions and decisions recorded on-chain and publicly accessible, DAOs achieve transparency that’s difficult for conventional organizations. This openness prevents misconduct and power concentration, supports fair governance, and fosters trust by making budgets and voting results fully visible to all members.

Disadvantages

1. Security Risks

DAOs are constantly exposed to threats like hacks and smart contract vulnerabilities. Several projects have suffered major fund losses from cyber attacks. Especially when smart contracts contain bugs, malicious actors may exploit them to steal assets.

2. Slow Decision-Making

Democratic processes that reflect all members' voices can lengthen decision timelines. It’s common for proposals to take weeks or months from submission to execution. In urgent situations, these delays can be problematic, and low voter turnout can postpone decisions further.

3. Underdeveloped Legal Framework and Legal Risks

Current legal systems often don’t fully accommodate DAOs, creating regulatory uncertainty. Tax issues, contract enforceability, and liability are unresolved. Shifts in regulation could make DAO operations difficult, and the stance of local authorities remains a moving target.

Leading DAOs in Japan

Many DAOs have launched in Japan in recent years, with vibrant activity. Here are several prominent examples:

Wagumi DAO

Wagumi DAO is a community focused on sharing the latest Web3 news and fostering peer learning. It’s open to everyone—from beginners to seasoned investors—and is free to join. Wagumi DAO regularly hosts study groups and online events, creating many opportunities for members to expand their knowledge.

The DAO also offers strong support in Japanese, making it easy for those new to Web3 or blockchain to participate. Discussions on topics like NFTs, DeFi, and the metaverse are active throughout the community.

Kunimitsu DAO

Kunimitsu DAO was founded by Hironao Kunimitsu, CEO of the crowdfunding 2.0 platform FiNANCiE. Created in recent years, its main goal is to foster startups that will lead Japan’s Web3 era.

The DAO provides funding, talent, and expertise to promising startups, and offers multifaceted support for their growth. It’s especially valuable for young founders aiming for Web3 entrepreneurship, providing mentorship and networking. Regular pitch events and hackathons are held to discover and develop innovative projects.

Ninja DAO

Ninja DAO is one of Japan’s largest DAO communities, bringing together members interested in NFTs and crypto. It’s free to join and offers robust Japanese-language support, making it accessible for newcomers.

Members include creators, artists, and developers from diverse backgrounds, working on many projects simultaneously. The NFT project “CryptoNinja” is especially well-known and influential in Japan’s NFT market. Ninja DAO’s culture encourages members to launch and run projects independently, fueling creative activity.

DAO History and Security Risks

The DAO concept traces back to research on multi-agent systems in the early Internet era of the 1990s. However, DAOs built on blockchain technology emerged in the mid-2010s.

In the past decade, the Ethereum community launched “The DAO,” the first major DAO, designed as a decentralized venture capital fund. It raised significant capital quickly, but a vulnerability in its smart contract was exploited, resulting in a large-scale loss of funds.

This “DAO incident” exposed the security risks DAOs face and became a turning point for subsequent development. It made smart contract security audits a top priority and drove the push for more robust DAO designs.

As DAOs gained traction as a business model, even top projects like “Nouns DAO” underwent splits in recent years, highlighting that DAO governance models are still evolving and that perfect models or management practices have yet to be established.

Key Security Risks

1. Smart Contract Vulnerabilities

The DAO incident showed that bugs or vulnerabilities in smart contracts create high hacking risk. Once deployed, smart contracts are difficult to upgrade, making thorough security audits critical—though uncovering every potential weakness in complex code remains a challenge.

2. Slow Emergency Response Due to Decentralization

Because DAOs lack centralized leadership, responding quickly to emergencies can be difficult. Traditional organizations allow executives to act immediately, but DAOs require consensus, which can delay action and increase losses.

3. Limited Legal Protections

Current laws do not fully cover DAOs, meaning legal remedies may be limited if a DAO falls victim to fraud or internal disputes arise. The legal standing and liabilities of DAOs remain unclear, resulting in litigation risk.

Japan DAO Association: Establishment and Regulatory Progress

The Japan DAO Association was formally launched in recent years, aiming to support the sustainable development of DAOs and build an industry self-regulation framework.

Purpose of the Japan DAO Association

The association seeks to promote healthy DAO growth—autonomous, decentralized organizations without centralized administrators—by building a self-regulatory industry framework. Its main goals include:

• Developing institutional and technical foundations to enable DAO success
• Creating model DAOs in Japan and sharing them globally
• Reforming capitalism and democracy frameworks to promote a fairer, more transparent society

Key Activities

1. Drafting and Implementing DAO Guidelines

Create comprehensive operational guidelines for DAOs, supporting practical implementation. The guidelines cover governance design, security, legal compliance, and other essential elements.

2. DAO and DAO Tool Certification

Assess and certify the reliability of DAOs and their operational tools. This enables users to choose secure, trustworthy DAOs and platforms. Certification includes security audits and management reviews.

3. Providing Templates for Bylaws, Rules, and Contracts

Offer standardized templates for articles of incorporation, rules, and contracts required for DAO operations. This simplifies DAO establishment and reduces legal risks. All templates are designed to comply with Japanese law.

4. Education and Outreach

Provide systematic educational programs and conduct outreach about DAOs. Use online seminars, workshops, and lectures to spread understanding of DAO concepts and operations.

5. Promoting DAO Adoption

Carry out initiatives to raise public awareness and adoption of DAOs, including media cooperation, events, and sharing success stories to highlight the value of DAOs.

6. Managing Industry Communities and Policy Advocacy

Facilitate industry communities, collect member input, and make constructive policy proposals to government and regulators to advance a regulatory environment that suits DAOs.

7. Practical Research and Knowledge Sharing

Continuously conduct case studies and research on DAOs, systematically accumulating and sharing findings with the industry to support further DAO development.

Government support for DAOs is also increasing. Recently, the Liberal Democratic Party’s Policy Research Council approved recommendations from the Web3 Project Team on DAO rulemaking. Chairperson Masaki Taira has announced plans to propose these to the Financial Services Agency and other authorities.

Hackathons held in recent years have attracted many companies and organizations, with over 100 issues submitted. The recommendations call for swift action on amendable regulations, with ongoing consideration for other matters. With regulatory bodies forming and government backing, Japan is steadily building the institutional groundwork for a thriving DAO ecosystem.

Summary

DAOs are an innovative organizational model powered by blockchain and distinguished by advanced transparency and fairness. Even beginners can gain hands-on experience and deepen their understanding of Web3 by starting with major domestic DAOs.

By acquiring governance tokens and participating actively in communities, you can directly engage with DAO governance and experience both the opportunities and challenges of decentralized organizations. As DAOs expand into new fields, early participation may enable you to benefit from the Web3 era’s advancements sooner.

The launch of the Japan DAO Association and efforts to clarify regulations are expected to further develop the domestic DAO ecosystem, creating a safer and more reliable environment. As legal uncertainties fade, more individuals and companies will join, and innovative Japanese DAOs may soon make a global impact.

Participating in a DAO isn’t just an investment opportunity—it’s also a valuable way to learn about new organizational models and contribute to building social systems for the Web3 era. If you’re interested, consider joining a leading domestic DAO community to experience DAO activities firsthand.

FAQ

What is a DAO? How does it differ from traditional organizations?

A DAO is a decentralized autonomous organization managed on blockchain technology, with no central leadership. Unlike traditional organizations, all participants have decision-making power, operations are highly transparent, and smart contracts automate execution.

How do I join a DAO? What are the steps?

To join a DAO, set up a crypto wallet (such as MetaMask). Then, acquire DAO tokens and store them in your wallet. Afterward, register with the DAO’s official site to participate in governance.

What do I need to participate in a DAO? (Wallet, crypto, etc.)

You need a crypto wallet like MetaMask and funds in your wallet to vote and participate in DAO governance.

What rights and responsibilities do DAO members have?

DAO members hold voting rights and participate in governance decisions. They may help decide reward distribution and fund management. Members have limited liability for DAO debts and must follow the rules.

What makes Web3 communities unique? How are they different from Web2?

Web3 communities are built on decentralized technology and blockchain, prioritizing user ownership and data privacy. Unlike Web2, they have no central administrators and enable highly transparent, autonomous community management.

What risks should I consider when joining a DAO?

Be aware of smart contract security risks, unclear legal responsibilities, and slow decision-making. Also consider governance token price volatility and the possibility of project failure.

What are some well-known DAO examples?

Famous examples include “The DAO,” a decentralized venture fund on Ethereum. DeFi protocols like Uniswap, Aave, and MakerDAO also use DAO-style governance via governance tokens.

How does decision-making work in a DAO?

DAO decisions are made through member voting. Proposals are submitted, token holders vote to approve or reject them, and smart contracts automatically execute approved proposals, ensuring transparency and decentralization.

What is a governance token and what does it do?

A governance token gives holders voting rights in a DAO or project. Token holders vote on proposals and may participate in revenue sharing.