# Dao properties and characteristics By [picoin](https://paragraph.com/@lailina) ยท 2022-01-23 --- Dao (Island) is an organizational form that encodes the organization's management and operation rules on the blockchain in the form of smart contract, so as to operate independently without centralized control or third-party intervention. Dao is expected to become a new and effective organization to deal with uncertain, diverse and complex environments. Dao (Island) has the characteristics of full openness, autonomous interaction, decentralized control, complexity, diversity and emergence. Different from the traditional organizational phenomenon, Dao (Island) is not limited by the space of the real physical world. Its evolution process is driven by events or goals. It forms, spreads and interacts highly, and dissolves automatically with the disappearance of goals. Dao (Island) has the following characteristics 1. Distributed and decentralized There is no central node and hierarchical management architecture in Dao (Island) \[30\]. It achieves organizational goals through interaction, competition and cooperation between bottom-up network nodes. Therefore, the business transactions between nodes and between nodes and between nodes and organizations in Dao (Island) are no longer determined by the administrative subordination relationship, but follow the principles of equality, voluntariness, mutual benefit and mutual benefit, driven by each other's resource endowment, complementary advantages and win-win interests. Each organization node will cooperate effectively under the incentive mechanism of pass according to its own resource advantages and talents, so as to produce strong synergy. 2. Autonomy and automated In an ideal Dao (Island), management is coded, programmed and automated. "Code is law", the organization is no longer a pyramid but distributed, the power is no longer centralized but decentralized, the management is no longer a bureaucratic system but community autonomy, and the operation of the organization no longer needs a company, but is replaced by a highly autonomous community. In addition, because Dao (Island) operates under the operation standards and cooperation mode jointly determined by stakeholders, it is easier to reach consensus and trust within the organization, which can minimize the trust cost, communication cost and transaction cost of the organization. 3. Organized and ordered Depending on the smart contract, the operation rules, responsibilities and rights of participants and reward and punishment mechanisms in Dao (Island) are open and transparent. In addition, through a series of efficient autonomy principles, the rights and interests of relevant participants have been accurately differentiated and reduced, that is, to match the corresponding rights and benefits to those individuals who pay labor, contribute and bear responsibility, so as to promote industrial division of labor and equal rights, responsibilities and interests, and make the organizational operation more coordinated and orderly. 4. Intelligence and tokenization The bottom layer of Dao (Island) encapsulates all the infrastructure supporting Dao (Island) and its derivative applications - internet basic protocol, blockchain technology, artificial intelligence, big data, Internet of things, etc. as the technical support, and takes digitization, intelligence and collaborative governance on and off the chain as the governance means, which has changed the traditional bureaucratic system and artificial management, It realizes the intelligent management of the organization. As an important incentive means in the process of Dao (Island) governance, token digitizes and certifies all elements of the organization (such as people, organizations, knowledge, events, products, etc.), so as to fully integrate monetary capital, human capital and other element capital, better stimulate the efficiency of the organization and realize value transfer. --- *Originally published on [picoin](https://paragraph.com/@lailina/dao-properties-and-characteristics)*