Setting up a DAO involves two parts:

• an online community of people

• making sure the rules in this group are decentralized

That’s it! So any existing online community can be converted into a DAO, as long as we make sure the rules are decentralized.

And setting up a DAO is just setting up the rules for participation, in an automated, and tamper-proof mechanism.

There are some common automation challenges for forming a DAO. These include:

• communication

• joining the DAO

• proposals for rule changes in the DAO

• voting infrastructure

• treasury management

Fortunately, tools have emerged to automate and decentralize these issues. Let’s walk through how we might set the tooling up in a simple example involving a DAO created to fund a social cause.