How to Join Web3 Communities: DAOs and Leading Examples

What Is a DAO in the Web3 Era?

A DAO (Decentralized Autonomous Organization) is an innovative structure that leverages blockchain technology to operate without centralized management or a hierarchical organization. Unlike traditional corporations, which rely on executives and boards of directors for centralized decision-making, DAOs eliminate these layers entirely.

The core feature of a DAO is its reliance on smart contracts—self-executing code that transparently and automatically enforces organizational rules and decisions. Members hold unique tokens, known as governance tokens, which grant voting rights. These tokens enable members to vote on the organization’s direction and key decisions in a democratic manner.

In the Web3 era, DAOs are poised to create new economic systems and communities, drawing significant attention as the next generation of corporate structure. Their promise of true decentralized governance—something conventional organizations struggle to achieve—has led to expanding applications across many sectors.

Main Features of DAOs

Here’s a closer look at the mechanisms and features that define DAOs.

Decentralized Structure

Within a DAO, voting rights are distributed according to the number of tokens each member holds. This approach prevents the hierarchy and concentration of power common in traditional organizations. Decisions are executed transparently and in a distributed manner via codified protocols and smart contracts, removing the possibility of arbitrary decisions by individuals or groups.

All proposals and voting outcomes are recorded on the blockchain and are publicly accessible. This greatly enhances organizational transparency and fosters trust among members.

Token Economy Mechanism

DAO members participate by holding governance tokens, which confer the right to vote and submit proposals. Critical decisions—such as project strategy, use of funds, or the creation of new rules—are made through member consensus.

While token holders with larger balances have greater influence, most DAOs avoid a purely capitalistic model. Many distribute tokens based on community contributions, so active members can earn more influence. This framework incentivizes proactive participation and long-term commitment.

Key Benefits of Web3 Community DAOs

Here are the most significant and innovative benefits DAOs deliver.

No Centralized Administrator Required

The defining advantage of DAOs is the absence of a centralized administrator. In traditional organizations, bodies such as CEOs and boards of directors set the organization’s direction. In a DAO, all participants engage in governance on equal footing.

Without leaders or rulers, organizational decisions are automatically executed by smart contracts on the blockchain. This structure helps prevent abuses of power and fraud by any individual or entity.

Holders of governance tokens—those with voting rights—control major organizational decisions and rule changes, making truly user-driven and decentralized management possible. This enables organizations to operate more democratically and equitably.

High Transparency Through Blockchain Technology

Because DAOs run on blockchain technology, all transactions and decision-making processes are recorded on-chain, delivering exceptional transparency.

In traditional organizations, decision-making and fund flows often take place behind closed doors, making it difficult for external stakeholders to access information. Even insiders may not have full visibility.

By contrast, DAOs record all transactions, voting outcomes, and proposals on the blockchain, making them permanently and publicly accessible in real time. This is a major advantage over conventional organizations.

DAO decisions are transparently recorded as the results of governance token holder votes. This dramatically improves transparency, allows participants to monitor operations at all times, and significantly enhances trust. It also helps prevent fraudulent or opaque activities before they occur.

Preventing Data Tampering and Fraud

DAOs maximize the security features of blockchain technology to prevent data tampering and fraud.

Data written to a blockchain is managed by a distributed network, making post-record alteration virtually impossible. To tamper with data, one would need to control a majority of the network’s nodes at once—a feat that is technically and financially prohibitive.

DAO operations are executed automatically by smart contracts, eliminating human errors and intentional misconduct. Where traditional organizations face risks from human involvement, DAOs greatly minimize these risks with technical controls—a major advantage.

Combining blockchain and smart contracts, DAOs offer high reliability and security, providing an environment where participants can contribute with confidence.

Main Drawbacks of DAOs

Despite their many advantages, DAOs also face notable challenges.

Legal Uncertainty

DAOs represent a new organizational model native to blockchains, and they often do not fit within existing legal structures. Most countries and regions have yet to establish clear legal definitions or regulatory frameworks for DAOs.

Most current laws and regulations are built for centralized entities and are not designed to address the unique properties of DAOs. In particular, when participants make decisions autonomously, the assignment of legal authority and responsibility can be ambiguous.

For example, if a DAO’s activities cause harm to a third party, it may be unclear who is legally liable. Tax treatment and compliance with existing financial regulations, such as securities laws, also remain unresolved in many cases.

As DAOs become more common, regulatory bodies and governments are expected to develop new legal frameworks. Some jurisdictions have already begun these efforts, and the evolving landscape is closely watched.

Security Risks

While DAOs are governed by smart contracts, the code behind these programs can contain bugs or vulnerabilities.

A prominent example is the 2016 “The DAO” incident, where a vulnerability in a smart contract was exploited, resulting in the unauthorized transfer of about 3.6 million ETH (worth roughly $520 million at the time). This event highlighted DAO security risks to the world.

Smart contracts, once deployed on a blockchain, are generally difficult to revise or update. Rigorous pre-deployment audits and testing are essential, but uncovering all vulnerabilities in complex code remains a challenge.

To mitigate security risks, many DAO projects commission professional audits and establish bug bounty programs. If you’re considering joining a DAO, always review its security policies and practices.

How to Join a Web3 Community DAO

Anyone can generally join a DAO freely. Many DAOs are open to all, but some require purchasing an NFT to participate. Here’s how to join a DAO and what to expect after joining.

Participating in the Discord Community

Most DAOs use chat platforms like Discord for primary communication. Start by joining the Discord server of a DAO that interests you.

To access a DAO’s Discord, look for an invitation link on the official website or social media (such as Twitter). Clicking the link will prompt you to log in or create a Discord account. If you already have an account, log in; if not, register a new account to join the DAO’s Discord community.

Once inside Discord, introduce yourself in the welcome channel and review the server’s rules and guidelines. Most DAOs have dedicated guides or FAQ channels for newcomers; these are great resources to help you get started. Engaging with others will help you understand the community’s culture and build relationships with other members.

Buying and Using NFTs in a DAO

Some DAOs require ownership of specific NFTs for official membership. Even in DAOs that are free to join, you may invest in NFT initiatives within the community.

To purchase an NFT in a DAO, check sales details on the DAO’s official website or search for the relevant collection on major NFT marketplaces. You’ll need a crypto wallet (such as MetaMask), so prepare one in advance.

NFT benefits depend on the DAO and may include voting rights, access to exclusive events, revenue sharing, or special roles. Before purchasing, verify what rights or privileges the NFT offers.

Contributing in the Community

Active participation and contributions are highly valued in DAOs and may even be rewarded. You can contribute by writing blog posts, posting on social media, joining Discord discussions, proposing projects, translating materials, or creating designs, among other activities.

By actively contributing, you directly support the community’s growth and operations. In recognition, you may receive governance tokens, NFT airdrops, or monetary rewards—providing the potential for financial upside.

Active involvement also helps you build deeper relationships with fellow DAO members. Networking with others who share your interests and goals can open new business opportunities and collaborations. Many new projects and partnerships have been launched through connections made within DAOs.

Leading DAOs in Japan

Japan is home to several prominent DAOs, each with unique characteristics. Here are three of the most notable examples.

Ninja DAO

Ninja DAO is a community DAO built around the popular NFT project CryptoNinja. Founded in December 2021 by noted web marketer Ikehaya, it has become one of Japan’s leading DAOs.

Ninja DAO’s hallmark is that NFT holders can freely use the CryptoNinja character commercially. Inspired by traditional Japanese ninja, this character appears in NFT art, manga, games, animation, merchandise, music, stage performances, and more.

A key milestone was the launch of a TV anime series starring an NFT character, “Shinobanai! CryptoNinja Sakuya,” which premiered in October 2023. As the first example of DAO-born IP entering mass media, it has drawn widespread attention in and outside the industry.

Ninja DAO is a leader in Japan’s Web3 community through its vibrant member engagement and creative projects.

Kunikatsu DAO

Kunikatsu DAO was established by Hiroyuki Kunimitsu, CEO of the Web3 crowdfunding platform FiNANCiE. Since its launch in May 2022, it has played a pivotal role in Japan’s Web3 ecosystem.

This DAO’s primary goal is to nurture leading Japanese startups for the Web3 era. It provides multifaceted support—including funding, talent matching, and business expertise—to entrepreneurs and projects with innovative ideas.

Kunikatsu DAO’s mission is to pioneer new community models for Web3 and promote them globally, making Japanese Web3 innovation known worldwide. Its community of experienced founders, engineers, and investors is driving the growth of Japan’s Web3 startup ecosystem.

Wagumi DAO

Wagumi DAO’s main objective is to share Japanese traditional culture and aesthetics with the world. It is centered on the NFT project WAGMI, recognized for its Japanese patterns and classic designs.

Founded in December 2022, Wagumi DAO aims to be a platform where people from around the world who are interested in Japanese culture and tradition can collaborate to create new value. It goes beyond NFTs—reimagining Japanese culture for a global audience through contemporary expressions.

Participants can showcase Japanese culture through NFT sales and exchanges, art production, and cultural event planning. There is also active collaboration and information sharing between members in Japan and abroad.

With its unique blend of tradition and innovation, Wagumi DAO is unlocking new opportunities for Japanese culture.

Conclusion

This article explored DAOs (Decentralized Autonomous Organizations) as a new community model in the Web3 era, covering their concepts, features, advantages and disadvantages, participation methods, and leading Japanese examples.

DAOs are innovative blockchain-based organizations without centralized management or hierarchy, operated democratically and autonomously by participants. They deliver advantages—such as transparency, fraud prevention, and equal access—not found in conventional organizations.

Although DAOs face hurdles like lagging legal frameworks and security concerns, these challenges are expected to be overcome with technological progress and regulatory development.

DAOs represent a transformative model built on blockchain, with immense potential. Adoption is accelerating in finance, art, gaming, content, social impact, and beyond—and is likely to expand into even more diverse domains.

As a new community paradigm for the Web3 era, DAOs will only grow in significance. If you’re interested, start by joining a DAO’s Discord community. By experiencing the environment and activities firsthand, you’ll gain a true understanding of what DAOs offer.

FAQ

What is a DAO? How does it differ from a Web2 organization?

A DAO is a decentralized organization built on blockchain technology. Unlike Web2 organizations, there is no central authority; participants make decisions democratically through voting. DAOs offer high transparency and are executed automatically by smart contracts.

What do I need to join a DAO? Can beginners participate?

To join a DAO, you need cryptocurrency (typically Ethereum). Beginners are welcome—just set up a wallet, purchase crypto, and access the DAO contract. Anyone can participate.

What are some well-known DAO projects?

Leading DAO projects include The DAO, BanklessDAO, Friends with Benefits, Aave, MakerDAO, and Uniswap Governance. These organizations feature decentralized governance and community-driven management.

What are the benefits and risks of joining a DAO?

Benefits include decentralized governance and earning potential. Risks involve legal ambiguity, security vulnerabilities, slower decision-making, and the risk of losing funds.

How are decisions made in a DAO? How do voting rights work?

Most DAOs use token-based voting, where the number of tokens you hold determines your voting power. Other models include quadratic voting, square root voting, and liquid democracy. Each DAO selects the governance structure that fits its needs.

How much does it cost to join a DAO? What is the typical initial investment?

The cost to join a DAO varies. Some require as little as a few dozen dollars; others may require several hundred or more. Be sure to factor in gas fees (network transaction costs) when budgeting.

What is a governance token in a DAO? How can I obtain one?

A governance token is a blockchain-based token used for DAO decision-making. Holders receive voting rights. You can acquire governance tokens via token sales, liquidity mining rewards, or by purchasing them on a marketplace.