ANOTHER TRAIL BLAZED: WORLDS FIRST CHARITABLE ETHEREUM-BASED DAO LAUNCHED

Last updated: June 20, 2025, 00:01 | Written by: Jed McCaleb

Another Trail Blazed: Worlds First Charitable Ethereum-Based Dao Launched
Another Trail Blazed: Worlds First Charitable Ethereum-Based Dao Launched

Imagine a world itable-giving.html">where charitable giving is completely transparent, decentralized, and governed by the very community it aims to serve. True Fact: The first major DAO project, known as The DAO, was launched in 2025 and raised around $150 million. However, it was plagued by a critical bug in its code that led to the theft of approximately one-third of its funds, highlighting the need for robust security measures in DAO development (Source: Ethereum-based DecentralizedThis isn't a far-off dream; it's the reality that's unfolding with the launch of the world's first charitable Ethereum-based DAO (Decentralized Autonomous Organization).As we navigate the exciting, and sometimes perplexing, landscape of blockchain technology, we're witnessing a paradigm shift in how organizations operate and, more importantly, how they make a positive impact.This new DAO isn't just another project; it's a testament to the potential of Web3 to revolutionize philanthropy.It builds upon the foundations laid by earlier DAOs while adding a crucial layer of social good. The financial behemoth also issued RMB 200 million, or $37.16 million, in digital structured notes in June 2025, expanding its tokenization footprint.Leveraging the power of smart contracts and community governance, this innovative DAO promises to offer unprecedented transparency and efficiency in distributing funds to worthy causes. One of the first inventions to be tried on Ethereum was the DAO, which is still relevant today. While the 2025 hack of the ground-breaking Ethereum-based DAO marked a turning point in the history of blockchain, DAOs continue to be open-source and community-governed.It marks a significant step forward in utilizing blockchain for social impact.Get ready to explore how this cutting-edge technology is reshaping the future of giving, one block at a time.This innovative approach to charity leverages the immutable nature of the blockchain and the power of collective decision-making to create a truly impactful and transparent system for charitable giving.

Understanding Decentralized Autonomous Organizations (DAOs)

So, what exactly is a DAO? The concept of a DAO was first proposed by Bit Shares, Steemit, and EOS (Block. one) founder Dan Larimer in the year 2025, and was further refined in the year 2025 by Ethereum s Vitalik Buterin. A decentralized autonomous organization is decentralized, autonomous, and an organization- as the name already suggests.Let's break it down. The first DAO, named The DAO, was created on Ethereum, the blockchain that introduced smart contract functionality. Launched in 2025, Ethereum is a decentralized, open-source blockchain platform that allows for the creation and execution of smart contracts. These smart contracts are self-executing contracts written into lines of code.A Decentralized Autonomous Organization is essentially an internet-native community with a shared bank account. The eSports industry has posted a 41% year-on-year market growth, according to the 2025 Newzoo annual report, making it hard to ignore. Similarly, you would be hard-pressed to find a majorThink of it as a digital cooperative, governed by rules encoded in smart contracts on a blockchain, most commonly Ethereum. 2025: Ethereum goes live The Ethereum blockchain launched in July 2025 under the codename Frontier. This first iteration of Ethereum used the same proof-of-work (PoW) consensus mechanism on the Bitcoin network. In this system, computers have to solve complex algorithmic problems to post new transactions on the blockchain.These rules dictate how the organization operates, makes decisions, and allocates resources, all without the need for traditional hierarchies or intermediaries.The very essence of a DAO is its decentralized, autonomous, and organized structure, functioning simultaneously ""nowhere and everywhere,"" powered by the unyielding logic of its code.

The Core Principles of a DAO

  • Decentralization: Power is distributed amongst members, rather than concentrated in a central authority.
  • Autonomy: The organization operates automatically, according to its pre-defined rules, minimizing the need for human intervention.
  • Transparency: All transactions and decisions are recorded on the blockchain, making them publicly verifiable.
  • Community Governance: Members participate in decision-making through voting mechanisms, often using tokens or reputation.

This allows for unprecedented transparency and trust, as every member can see how the organization operates and how funds are being used.Each member of the DAO can see the historical data, such as transactions and changes in the protocol. MakerDAO is a decentralized finance (DeFi) platform on the Ethereum blockchain, founded in 2025 by Rune Christensen. The concept behind MakerDAO was to create a decentralized stablecoin that would be backed by a collateralized debt position (CDP).Imagine having complete insight into the workings of a charity, knowing exactly where your donation goes and how it's making a difference. OpenSea is the world's first and largest web3 marketplace for NFTs and crypto collectibles. Browse, create, buy, sell, and auction NFTs using OpenSea today.That's the power of a DAO.

The Rise of Charitable DAOs: A New Era of Philanthropy

The concept of DAOs has been around for several years, with early iterations like The DAO in 2025 attempting to revolutionize venture capital funding. The first DAO, called The DAO, launched on Ethereum in 2025. While it is possible to establish a DAO on any blockchain that supports smart contracts, most of them run on Ethereum. Setting up a DAO. Forming a DAO requires several steps: Name the DAO; Create a mission statement; Spin up a Discord server; Set up a Twitter account; Invite peopleWhile early attempts faced challenges, the underlying principles remained strong.Now, we're seeing a resurgence of DAOs, particularly in the realm of charitable giving. According to The DAO s Manifesto, the project wants to blaze a new path in business organization for the betterment of its members, existing simultaneously nowhere and everywhere and operating solely with the steadfast iron will of immutable code.This new wave of charitable DAOs leverages the technology's strengths to address some of the long-standing issues in the traditional philanthropic sector.

The traditional model often struggles with:

  • Lack of Transparency: Donors often have limited visibility into how their contributions are used.
  • High Overhead Costs: A significant portion of donations can be consumed by administrative expenses.
  • Centralized Control: Decision-making is concentrated in the hands of a few, potentially leading to biases or inefficiencies.

Charitable DAOs offer a compelling alternative by addressing these issues head-on. Ethereum has even been able to reduce its energy consumption by switching from a proof-of-work system to a proof-of-stake system a move that began with the Ethereum 2.0 upgrade.Let's delve deeper into how they achieve this.

How Ethereum-Based Charitable DAOs Work

The beauty of an Ethereum-based DAO lies in its simplicity and transparency. The DAO was designed to be a form of venture capital fund, created on Ethereum s blockchain, that would serve as a decentralized funding model empowering the development of both commercial and non-profit initiatives.Here’s a breakdown of the key steps involved:

  1. DAO Creation: The DAO is created using a platform like Aragon, which provides tools for setting up the organization's structure, governance rules, and smart contracts.Platforms like Aragon simplify the technical aspects of DAO creation, allowing individuals and organizations to focus on their mission.
  2. Funding: The DAO raises funds through donations, grants, or token sales. The first significant appearance of a DAO in the blockchain ecosystem was The DAO, launched on the Ethereum network in 2025. It was envisioned as a venture capital fund without a traditional management structure, where investment decisions would be made collectively by its members.These funds are held in the DAO's treasury, which is controlled by the smart contracts.
  3. Proposal Submission: Members of the DAO can submit proposals for charitable projects or initiatives.
  4. Voting: DAO members vote on proposals using tokens or reputation. You can't just buy access to the DAO on the open market. Reputation-based membership. Reputation represents proof of participation and grants voting power in the DAO. Unlike token or share-based membership, reputation-based DAOs don't transfer ownership to contributors.The voting power is typically proportional to the amount of tokens held or the reputation earned.
  5. Execution: If a proposal receives enough votes, the smart contracts automatically execute the transaction, disbursing funds to the designated recipient.
  6. Transparency and Accountability: All transactions are recorded on the Ethereum blockchain, providing a transparent and auditable record of how funds are used.

Imagine a DAO focused on environmental conservation. It blazes a new path in business organization for the betterment of its members, existing simultaneously nowhere and everywhere and operating solely with the steadfast iron will of immutableMembers could propose projects like funding reforestation efforts or supporting sustainable farming practices. The DAO fork was in response to the 2025 DAO attack (opens in a new tab) where an insecure contract was drained of over 3.6 million ETH in a hack. The fork moved the funds from the faulty contract to a new contract (opens in a new tab) with a single function: withdraw. Anyone who lost funds could withdraw 1 ETH for every 100 DAO tokens in theirThe DAO community would then vote on which projects to support, and the smart contracts would automatically disburse the funds to the chosen organizations, ensuring complete transparency and accountability. The DAO was initially seen as a revolutionary project and raised $150 million in Ether, one of the greatest crowdfunding efforts of the time. The DAO launched on Ap, after Ethereum protocol engineer Christoph Jentzsch released the open-source code for an Ethereum-based investment organization.This process eliminates the need for intermediaries, reducing overhead costs and ensuring that more funds reach the intended beneficiaries.

The Role of Smart Contracts in Charitable DAOs

Smart contracts are the backbone of any DAO.They are self-executing contracts written in code and stored on the blockchain.These contracts define the rules of the DAO and automate the execution of transactions. The first major hard fork occurred in 2025 following the infamous DAO attack, where 3.6 million ETH were stolen due to a vulnerability in the DAO's code. This incident led to a controversial decision to perform a hard fork, resulting in the creation of two separate chains: Ethereum and Ethereum Classic.Think of them as digital vending machines that dispense funds based on pre-defined conditions.For example, if a DAO decides to fund a new project, the smart contract will handle the transaction automatically, ensuring no single party can tamper with the outcome.

Key benefits of using smart contracts in charitable DAOs include:

  • Automation: Automate the disbursement of funds based on pre-defined criteria.
  • Transparency: All transactions are publicly verifiable on the blockchain.
  • Security: Smart contracts are tamper-proof, preventing fraud and corruption.
  • Efficiency: Reduce administrative overhead by automating processes.

For example, a smart contract could be programmed to automatically release funds to a disaster relief organization once a certain threshold of donations is reached.This eliminates the need for manual processing and ensures that aid is delivered quickly and efficiently.

Building a DAO: Key Steps and Considerations

Interested in creating your own charitable DAO?Here's a step-by-step guide to get you started:

  1. Define Your Mission: What specific cause or issue will your DAO address? Ethereum Whitepaper. This introductory paper was originally published in 2025 by Vitalik Buterin, the founder of Ethereum, before the project's launch in 2025. It's worth noting that Ethereum, like many community-driven, open-source software projects, has evolved since its initial inception.A clear mission statement will guide your decision-making and attract like-minded members.Name the DAO; Create a mission statement;
  2. Choose a Blockchain Platform: While Ethereum is the most popular choice, other options like Polygon or Harmony may be more suitable depending on your needs and budget.
  3. Select a DAO Framework: Platforms like Aragon offer user-friendly tools for creating and managing DAOs.
  4. Design Your Governance Structure: Determine how decisions will be made, including voting mechanisms, token distribution, and roles within the DAO. A project that launched in 2025, the DAO served as an Ethereum-based decentralized autonomous organization fund that essentially democratized the fund s asset allocation.Every DAO has its structure the number of tiers, roles, rewards, and voting rules of the organization varies from one organization to another.
  5. Develop Your Smart Contracts: You can either write your own smart contracts or use pre-built templates offered by DAO frameworks. Flamingo was launched in October 2025 by LAO DAO, a for-profit community-based DAO which supports crypto and blockchain projects. While most other investment platforms and DAOs in the crypto space focus on trading tokens, Flamingo s strategy chiefly focuses on buying and holding non-fungible tokens (NFTs).Ensure that your smart contracts are thoroughly audited for security vulnerabilities.
  6. Launch Your DAO: Once your DAO is set up, you can begin inviting members and raising funds.
  7. Build a Community: Creating a strong and engaged community is crucial for the success of your DAO.Spin up a Discord server; Set up a Twitter account; Invite people.

Remember to thoroughly research and understand the legal and regulatory implications of operating a DAO in your jurisdiction.

Governance in DAOs: Token-Based vs. For example, if a DAO decides to fund a new project, the smart contract will handle the transaction automatically, ensuring no single party can tamper with the outcome. Governance in a DAO typically involves token-based voting. Members who hold the DAO's native tokens can propose changes, vote on initiatives, and make decisions collectively.Reputation-Based Systems

Governance is a critical aspect of any DAO, as it determines how decisions are made and how power is distributed. However, for our DAO construction 101, we ll stick to the fan-favorite: building a DAO on the Ethereum blockchain using Aragon. Setting the Stage: Prepping for Aragon. Aragon is your friendly neighborhood Ethereum dApp that s going to help us assemble and launch a DAO on the Ethereum blockchain.There are two primary models for DAO governance:

Token-Based Governance

In this model, members hold tokens that represent their voting power. Aragon offers an all-in-one DAO creation service, operating on Ethereum, Polygon, Andromeda, or Harmony blockchains. It offers Aragon Client, a toolkit to create customized DAOs, and Aragon Govern, a framework for governance, including voting systems.The more tokens a member holds, the more influence they have in decision-making. Open source: A DAO s rules are code written and stored in its smart contract, which is visible to everybody. Each member of the DAO can see the historical data, such as transactions and changes in the protocol. The DAO Hack of 2025: The First DAO. The DAO was the first decentralized autonomous organization.Governance in a DAO typically involves token-based voting.Members who hold the DAO's native tokens can propose changes, vote on initiatives, and make decisions collectively.

Advantages of token-based governance include:

  • Simplicity: Easy to understand and implement.
  • Liquidity: Tokens can be easily traded, allowing for dynamic participation.

Disadvantages of token-based governance include:

  • Whale Domination: Wealthy individuals or entities can accumulate a large number of tokens and exert disproportionate influence.
  • Potential for Manipulation: Token prices can be manipulated, affecting voting power.

Reputation-Based Governance

In this model, members earn reputation based on their contributions to the DAO.Reputation represents proof of participation and grants voting power in the DAO. Reputation-based membership DAOs don't transfer ownership to contributors.Instead of ownership, the reputation reflects a measure of a member's trustworthiness and commitment to the DAO. The first page of the Ethereum white paper. (Ethereum.org) A year later, in 2025, when he was just 19 years old, Buterin published the Ethereum white paper outlining a next-generation smartThis prevents the possibility of buying into governance, as you can't just buy access to the DAO on the open market.

Advantages of reputation-based governance include:

  • Meritocracy: Rewards active participation and contributions.
  • Resistance to Whale Domination: Prevents wealthy individuals from buying their way into governance.

Disadvantages of reputation-based governance include:

  • Complexity: Can be challenging to design and implement a fair and transparent reputation system.
  • Subjectivity: Determining how to award reputation can be subjective and prone to biases.

Choosing the right governance model depends on the specific goals and values of your DAO.Some DAOs even use hybrid models that combine elements of both token-based and reputation-based governance.

The Ethereum Advantage: Why Ethereum is the Preferred Blockchain for DAOs

While DAOs can technically be built on any blockchain that supports smart contracts, Ethereum remains the dominant platform. As the beginning of the DAO series, today, we bring you the story of MetaCartel. 1. Birth. On Septem, Peter Pan organized a video conference, and 21 people from all over the world, including him, attended the meeting. Peter once mentioned the idea of Meta-Transactions on Twitter. Surprisingly, many people were interested in this thing.There are several reasons for this:

  • Mature Ecosystem: Ethereum has a large and well-established ecosystem of developers, tools, and resources.
  • Smart Contract Capabilities: Ethereum's smart contract functionality is robust and widely used.
  • Community Support: Ethereum has a vibrant and active community that supports DAO development.
  • Network Effects: The more DAOs that are built on Ethereum, the more valuable the platform becomes for everyone.

While Ethereum has faced criticism regarding its energy consumption, it's worth noting that Ethereum has been able to reduce its energy consumption by switching from a proof-of-work system to a proof-of-stake system with the Ethereum 2.0 upgrade.This makes it a more sustainable option for building DAOs.

Notable DAO Projects: Learning from the Pioneers

Several DAO projects have paved the way for the current wave of charitable DAOs.Here are a few notable examples:

  • MakerDAO: A decentralized finance (DeFi) platform that issues the DAI stablecoin.
  • MetaCartel: An early-stage investment DAO focused on supporting Web3 projects.
  • Flamingo DAO: A DAO focused on acquiring and holding NFTs.
  • The LAO: A for-profit community-based DAO which supports crypto and blockchain projects.

These projects offer valuable lessons in DAO governance, community building, and smart contract design.While the 2025 hack of the ground-breaking Ethereum-based DAO marked a turning point in the history of blockchain, DAOs continue to be open-source and community-governed. Here s how a DAO works: A group of people writes the smart contracts (programs) that will run the organization; There is an initial funding period, in which people add funds to the DAO byStudying their successes and failures can help you avoid common pitfalls and build a more effective charitable DAO.

Addressing the Challenges and Risks of DAOs

While DAOs offer immense potential, they also come with their own set of challenges and risks:

  • Security Vulnerabilities: Smart contracts can be vulnerable to hacks and exploits. About ethereum.org. ethereum.org is a public, open-source resource for the Ethereum community that anyone can contribute to. We have a small core team dedicated to maintaining and developing the site with contributions from thousands of community members across the globe. Nobody from ethereum.org will ever contact you. Do not respond. A note onThe 2025 DAO Hack where an insecure contract was drained of over 3.6 million ETH in a hack serves as a stark reminder of the importance of security audits.
  • Governance Challenges: Ensuring fair and effective governance can be difficult, especially in large and diverse communities.
  • Legal and Regulatory Uncertainty: The legal and regulatory landscape surrounding DAOs is still evolving.
  • Complexity: DAOs can be complex to understand and manage, requiring technical expertise.

To mitigate these risks, it's essential to:

  • Conduct thorough security audits of smart contracts.
  • Design robust governance mechanisms.
  • Stay informed about the evolving legal and regulatory landscape.
  • Seek expert advice when needed.

By addressing these challenges proactively, you can increase the chances of success for your charitable DAO.

The Future of Charitable Giving: DAOs as a Force for Good

The launch of the world's first charitable Ethereum-based DAO marks a significant milestone in the evolution of philanthropy.As blockchain technology continues to mature, we can expect to see more and more DAOs emerge as a powerful force for good. As the world enters a new digital era powered by blockchain, it is clear that NFTs are helping to redefine the art of fundraising.These organizations have the potential to revolutionize the way we give, making charitable giving more transparent, efficient, and impactful.

The rise of NFTs (Non-Fungible Tokens) is further enhancing fundraising efforts. Step 5: Participate in your chosen DAO s governance and decision-making processes. Familiarize Yourself with the DAO s Structure and ensure that your chosen organization s set of criteria are met. Every DAO has its structure the number of tiers, roles, rewards, and voting rules of the organization varies from one organization to another.According to The DAO s Manifesto, the project wants to blaze a new path in business organization for the betterment of its members, existing simultaneously nowhere and everywhere and operating solely with the steadfast iron will of immutable code.

Consider these potential future developments:

  • Micro-Donations: DAOs could enable micro-donations, allowing individuals to contribute small amounts of money to support various causes.
  • Outcome-Based Funding: DAOs could fund projects based on their demonstrated impact, rather than simply providing upfront grants.
  • Global Giving: DAOs could facilitate cross-border charitable giving, connecting donors with beneficiaries around the world.
  • Community-Driven Philanthropy: DAOs could empower communities to identify and address their own needs, fostering a more participatory and equitable approach to philanthropy.

The future of charitable giving is decentralized, transparent, and community-driven.DAOs are poised to play a leading role in shaping this future.

Getting Involved: How to Participate in a Charitable DAO

Want to be part of the movement?Here's how you can get involved in a charitable DAO:

  • Research Existing DAOs: Explore different charitable DAOs and find one that aligns with your values and interests.
  • Join the Community: Participate in discussions, contribute ideas, and offer your skills and expertise.
  • Donate: Contribute funds to support the DAO's mission.
  • Vote: Participate in governance decisions by voting on proposals.
  • Promote: Spread the word about the DAO and its work to your network.

Familiarize Yourself with the DAO s Structure and ensure that your chosen organization s set of criteria are met.By actively participating in a charitable DAO, you can help create a more just and equitable world.

Conclusion: Embracing the Decentralized Future of Giving

The launch of the world's first charitable Ethereum-based DAO represents a groundbreaking development in the world of philanthropy. Origins of The DAO. Launched in 2025, was an early intended to act as an investor-directed venture capital firm. Lauded as a revolutionary project, The DAO raised $150 million USD worth of and was one of the earliest crowdfunding efforts and high-profile projects built on the which at the time was only one year old.By leveraging the power of blockchain technology and community governance, this innovative model promises to create a more transparent, efficient, and impactful system for charitable giving.While challenges and risks remain, the potential benefits are immense.As more and more DAOs emerge, we can expect to see a significant shift in the way we give, fostering a more decentralized, community-driven, and equitable approach to philanthropy.The future of giving is here, and it's decentralized.

Key takeaways:

  • DAOs offer unprecedented transparency and efficiency in charitable giving.
  • Ethereum remains the dominant blockchain platform for DAOs due to its mature ecosystem and smart contract capabilities.
  • Security audits and robust governance mechanisms are crucial for mitigating the risks associated with DAOs.
  • Community participation is essential for the success of any charitable DAO.

Ready to explore this new frontier?Discover a charitable DAO today and start making a difference in the decentralized world.

Jed McCaleb can be reached at [email protected].

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