Participating in DAO Communities in the Web3 Era and Prominent DAOs

What Is a DAO? The Community Model of the Web3 Era

A DAO (Decentralized Autonomous Organization) is an innovative organizational model that operates without centralized managers or hierarchical structures by leveraging blockchain technology. Unlike traditional companies or groups, DAOs use self-executing programs called smart contracts to enforce organizational rules and decision-making with transparency and automation—this is their defining feature.

Members participate in governance by holding the organization’s native governance tokens. These tokens grant voting rights proportional to each member’s holdings, allowing them to influence key decisions such as the organization’s direction, fund allocation, and rule changes. This decentralized governance process prevents power from concentrating in the hands of a few and establishes an environment where all participants can contribute equally to management.

In the Web3.0 era, DAOs are attracting worldwide attention as organizational models with the potential to create new economies and communities. By harnessing the transparency and immutability of blockchain, DAOs are being positioned as the next evolution of the corporation and are expected to find applications across a variety of sectors.

Key Characteristics of DAOs

The primary characteristics and mechanisms of DAOs are as follows:

Decentralized Structure

In DAOs, voting rights are allocated based on the number of tokens held by members. Decisions are executed through transparent, decentralized processes codified in protocols and smart contracts, removing the potential for arbitrary decisions by specific managers or executives. All decision-making is recorded on the blockchain, ensuring transparency and allowing anyone to verify the process at any time.

This decentralized decision-making enables genuinely democratic operations, which are challenging to achieve in conventional hierarchical organizations. Participants can join governance from anywhere in the world, fostering global community development.

Token Economy Model

Members gain the right to participate in a DAO by holding governance tokens, which enable voting and proposal submission. Organizational direction and fund usage are determined by member consensus, with greater token holdings resulting in greater influence over decisions.

The token economy isn’t just about voting power—it’s an engine for diverse economic activity, including incentive structures based on contributions and value sharing as the community grows. Because token values are tied to organizational success, members are naturally motivated to cooperate and contribute to growth.

Benefits of Web3 Community DAOs

DAOs offer a range of benefits not found in traditional organizational forms. Here, we highlight three key advantages:

DAO Benefit 1: No Centralized Manager

The most groundbreaking feature of a DAO is its lack of centralized managers or dominant leaders. In traditional organizations, executives and boards tend to monopolize decision-making, leaving regular members with limited roles. DAOs, by contrast, allow every participant to engage equally in governance.

Smart contracts on the blockchain execute decisions automatically and transparently. Governance token holders can vote on key matters and submit proposals. This user-driven, decentralized model prevents power abuse by individuals or groups and enables more equitable, democratic operations.

Additionally, flat, manager-less structures accelerate decision-making and promote innovation. Whereas traditional organizations require multiple layers of approvals, DAOs empower swift decision-making through direct voting by members.

DAO Benefit 2: Blockchain-Enabled Transparency

DAOs leverage blockchain technology to permanently record all transactions and decisions, dramatically enhancing organizational transparency.

In legacy organizations, decision-making and fund movements are typically internal and hard for outsiders to see. Only certain stakeholders have access to details, creating information asymmetry. In DAOs, all important data is recorded on-chain, so anyone can review and verify it in real time.

DAO governance details—such as proposal submissions, voting results, and fund usage—are all logged transparently. This level of transparency significantly boosts organizational trust, allowing participants to engage with confidence.

Transparency also deters fraud and opaque transactions. Since all actions are recorded and immutable, fraud becomes extremely difficult. This supports organizational soundness and long-term growth.

DAO Benefit 3: Tamper-Proof and Fraud-Resistant Data

DAOs are built on the core blockchain principle of immutability, providing strong security—data tampering and fraud are effectively prevented.

On-chain data is managed by a distributed network, with identical records stored across multiple nodes. Even if a specific node is compromised, inconsistencies are quickly detected and invalidated. This decentralized verification ensures data integrity.

DAO operations are also automated by smart contracts, drastically reducing the risk of human error or fraud. Smart contracts execute only predefined rules, excluding arbitrary manipulation. For instance, if payment conditions are met, funds are sent automatically—completing transactions transparently and fairly without human intervention.

By utilizing blockchain, DAOs achieve higher security and reliability than traditional organizations. Preventing tampering and fraud enhances trust and safety, creating a secure environment for participants.

Limitations of DAOs

Despite their many strengths, DAOs face several challenges and limitations. Here, we discuss two main drawbacks:

DAO Limitation 1: Uncertain Legal Frameworks

DAOs operate on blockchains and don’t always fit existing legal systems in many countries. Most regulations were designed for centralized organizations and often don’t account for the decentralized, autonomous nature of DAOs.

A key issue is ambiguous legal responsibility and authority. DAOs lack clearly defined representatives, making it unclear who is liable in legal disputes. For example, it’s often uncertain who signs contracts or responds to lawsuits on behalf of the DAO.

There’s also uncertainty about taxation, with many jurisdictions lacking clear guidelines for DAO revenue or member distributions. Legal ambiguity can impede DAO adoption and growth.

However, as DAOs become more recognized and widely used, governments and regulators are likely to respond, and legal frameworks are expected to evolve. Some regions have already started to recognize DAOs legally, and future developments are closely watched.

DAO Limitation 2: Hacking Risks

DAOs are governed by smart contracts, which may have bugs or vulnerabilities. Since humans write the code, design flaws or errors can’t be completely eliminated.

The best-known case is The DAO hack in 2016, when an attacker exploited a smart contract vulnerability and drained about 3.6 million ETH (worth roughly 5.2 billion yen at the time). The attacker used a reentrancy bug to withdraw funds in an unauthorized way. The incident underscored the critical importance of smart contract security.

Once deployed, smart contracts are generally hard to modify. Even if vulnerabilities are found, updates may be difficult to apply quickly, making it challenging to limit losses.

To address these risks, DAO developers and communities typically publish smart contract code for public review and seek external security audits. Many also run bug bounty programs to reward vulnerability discovery and enhance security.

How to Join a Web3 Community DAO

Most DAOs are open to anyone and generally free to join. While some require the purchase of specific NFTs, the majority welcome participants through tools like Discord.

Here are three steps for getting involved in a DAO after joining:

Step 1: Join the DAO’s Discord

Most DAOs use chat tools like Discord or Telegram for communication and information sharing. Your first step is to join these platforms.

Find invitation links on the DAO’s official site, Twitter, or social media. Most DAOs post Discord invites on their homepage or in social profiles. Click the link to create or log in to a Discord account and join the server.

Once inside, introduce yourself in the appropriate channel—share your interests, expertise, and reasons for joining to connect with members. Be sure to review rules and guidelines to understand the community culture.

DAO Discord servers usually have multiple channels, including general chat, project threads, proposal, and voting discussions. Join channels that interest you and participate actively to get involved in DAO activities.

Step 2: Purchase DAO NFTs

Some DAOs require NFT ownership to join. These NFTs serve as more than digital art—they can grant membership or governance rights within the DAO.

Even if you join for free, you can later buy NFTs related to DAO projects for added benefits or privileges, allowing deeper involvement.

To buy DAO NFTs, check the official site for sale details or browse major NFT marketplaces like OpenSea or Rarible. You’ll need a crypto wallet (e.g., MetaMask) and cryptocurrencies such as ETH.

Before purchasing, confirm what rights or perks the NFT provides—these might include weighted voting, event access, or exclusive content. NFT prices fluctuate, so time your purchase carefully.

Step 3: Contribute and Share Content

After joining, active content creation can raise your profile and open new opportunities within the community. This includes writing blog posts, sharing on social media, participating in discussions, and submitting proposals.

Consistently contributing high-quality content can earn you trust and recognition as a core member. It can also showcase your skills and lead to work opportunities related to the DAO—such as marketing, design, programming, or community management.

Some DAOs reward contributors with governance tokens or NFTs based on their impact. Creating valuable content, submitting important proposals, or fostering growth may earn you rewards, which could appreciate in value and provide financial returns.

Active content creation can also build strong relationships and lead to new business opportunities beyond the DAO. Members with shared values might collaborate on new projects or form partnerships, making content creation a key to both career and business growth.

Leading DAOs in Japan

Several prominent DAOs are active across various sectors in Japan. Here are three noteworthy examples:

Leading Japanese DAO 1: Ninja DAO

Ninja DAO is a large community of holders and fans of the top Japanese NFT project "CryptoNinja." Founded in December 2021 by prominent web marketer Ikehaya, Ninja DAO brings together a vibrant and dynamic group.

Its hallmark is that NFT holders can freely use "CryptoNinja" characters for commercial purposes. These ninja-themed characters appear in NFT art, manga, games, anime, merchandise, music, and live performances—making Ninja DAO a model for the creator economy in Japan.

The community is highly active, with tens of thousands of members. New projects launch daily on Discord, and members collaborate to create novel value—for example, the mobile game "CryptoNinja Party!" and the educational program "Ninja DAO Free School."

One milestone achievement is the production and October 2023 broadcast of the world’s first TV anime featuring an NFT character, "Shinobanai! CryptoNinja Sakuya." The success of the anime has led to further series, marking an unprecedented entry of NFT projects into mainstream media.

Ninja DAO maximizes the potential of NFTs and DAOs, uniting creators and fans in a new collaborative community model.

Leading Japanese DAO 2: Kunimitsu DAO

Kunimitsu DAO was created by Kunimitsu Hironobu, CEO of the blockchain-based crowdfunding platform FiNANCiE. He is a leader in Japan’s Web3 industry, leveraging his expertise and network to operate the DAO.

Launched in May 2022, Kunimitsu DAO’s main goal is to "create startups that will represent Japan in the Web3 era." The DAO supports entrepreneurs and projects in Web3 by providing funding, human resources, and expertise.

Its mission is to "explore new community models for the Web3 age and promote them globally." Members support Web3 projects, experiment with new business models, and participate in regular events and study sessions to share knowledge and network.

Kunimitsu DAO serves as an incubator for Web3 startups and is a key driver in developing Japan’s Web3 ecosystem. Its members include entrepreneurs, investors, engineers, designers, and marketers who work together to generate new value.

Leading Japanese DAO 3: Wagumi DAO

Wagumi DAO aims to share Japanese traditional culture and aesthetics globally. It operates the NFT project "WAGMI (We’re All Gonna Make It)," which blends Japanese patterns and design with blockchain technology in innovative ways.

Founded in December 2022, Wagumi DAO was created to bring together people interested in Japanese traditional culture and art from around the world, providing a platform for collaboration and value creation. The DAO addresses how to preserve and develop Japan’s cultural identity in the digital age.

Participants promote Japanese culture worldwide through NFT sales and exchanges, art production, and cultural event planning. Activities include modern NFT art based on traditional motifs and digital events themed around Japanese festivals and traditions.

The DAO encourages active knowledge sharing and exchange among members. With many overseas participants, Wagumi DAO fosters a unique community that fuses tradition and innovation.

By embracing blockchain and NFTs, Wagumi DAO is unlocking new value and potential in Japanese traditional culture and working to pass it on to future generations.

Summary: DAOs Will Continue to Spread as Web3-Native Organizations

This article introduced DAOs—decentralized autonomous organizations that are gaining attention as a new community model for the Web3 era—covering their core concepts, participation methods, and leading Japanese examples.

DAOs are blockchain-based organizations that operate autonomously without centralized managers or hierarchies. Features such as automated decision-making with smart contracts, democratic voting via governance tokens, and blockchain-enabled transparency and immutability make them distinct from traditional organizations.

Despite challenges such as uncertain legal frameworks and hacking risks, awareness of these issues is rising, and both security measures and legal systems are gradually evolving. As technology and social understanding advance, DAOs are expected to become safer and more practical organizational models.

Anyone can join a DAO easily using communication tools like Discord. By contributing actively, you can unlock new career and business opportunities in the community.

In Japan, DAOs like Ninja DAO, Kunimitsu DAO, and Wagumi DAO are emerging in diverse fields, each building unique visions and cultures. These organizations are attracting people as new venues for value creation in the Web3 era.

DAOs powered by blockchain are groundbreaking for enabling truly decentralized, democratic governance that traditional structures struggle to achieve. Given their benefits, DAOs are expected to see broader adoption across businesses, nonprofits, local communities, and the creator economy.

As Web3-native community models, DAOs will continue to grow in importance. If you’re interested in joining or exploring Web3 DAOs, use this article as a guide to experience the possibilities of this innovative organizational model for yourself.

FAQ

What is a DAO? How is it different from traditional organizations?

A DAO is a decentralized autonomous organization with no centralized leadership. All participants have equal rights and make decisions collectively. Unlike traditional organizations, DAOs are managed transparently and automatically through smart contracts.

How do I join a DAO? What do I need to get started?

To join a DAO, first learn about its purpose and governance structure, then acquire the relevant tokens. Set up a wallet and review official project information. Once you meet the requirements, you can participate.

What are some well-known DAOs? (e.g., MakerDAO, Uniswap, Aave, etc.)

Well-known DAOs include MakerDAO, Uniswap, and Aave. MakerDAO is the issuer of the DAI stablecoin, Uniswap is a DEX, and Aave is a lending protocol—each plays a key role in the Web3 ecosystem.

What risks are involved in joining a DAO? Can I lose my funds?

DAO participation entails risks such as smart contract vulnerabilities, governance issues, and regulatory uncertainty. There is a risk of losing funds, so thorough research and understanding are necessary.

What is the role of governance tokens in a DAO?

Governance tokens give DAO members voting rights and the ability to participate in important decisions. Holders can submit and vote on proposals, determining the DAO’s policies and fund allocation, and supporting decentralized governance.

How much money do I need to join a DAO?

The amount required to join a DAO varies by project. Participation typically starts at around 500 DAO tokens (about 110,000 yen). Acquiring DAO Power grants voting and governance rights. Check each project’s official information for specific details.

Is it legal for Japanese nationals to join a DAO?

Yes, it is legal. Japan imposes no special restrictions on DAO participation. As of 2026, DAO activities are permitted and Japanese nationals are free to join and operate DAOs.

How is a DAO different from general crypto projects?

A DAO is a decentralized autonomous organization without a central administrator. Participants make decisions through governance token voting. Unlike typical crypto projects, DAOs are managed automatically by smart contracts and feature a highly transparent, democratic structure.