Is the growth of Decentralized Autonomous Organizations (DAOs) changing how businesses and communities are governed? DAOs come from blockchain technology, which allows for a new way to govern decentralized and trustless organizations with enhanced security and transparency. In this blog, we will review the best blockchain platforms for building DAOs such as Ethereum, Polygon, and new emerging platforms, whether you want to create a DAO or scale an already existing DAO, knowing which blockchain is best for DAO development can have a big influence on the success of your decentralized organization.

What is a DAO Platform?

A DAO platform is a blockchain-based ecosystem that enables users to create, manage and govern Decentralized Autonomous Organizations. These platforms use smart contracts to automatically make decisions, impose governance rules, and execute transactions without intermediaries. The flexibility, transparency and security of these platforms makes DAOs a perfect use case for DAOs to govern themselves without the need to answer to one controlling party.

Why Choose Blockchain for DAOs?

Blockchain technology provides the necessary transparency, immutability, and security for DAOs. Blockchains involve decentralized governance, which means that when a DAO operates on a blockchain, that decision-making occurs in a decentralized peer-to-peer environment versus controlled by a centralized authority. For organizations seeking a decentralized governance structure, this is appealing.

Ethereum DAO Development

Ethereum is the dominant blockchain platform for DAO development because of its market leadership in supporting smart contracts, as well as being the highest utilized blockchain network for decentralized applications (dApps) and DAOs. With Ethereum, you can:

• Create a DAO on blockchain and use ERC-20 tokens and ERC-721 tokens for governance and utility.
• Access its Ethereum DAO development tools to provide transparency with respect to decision-making and voting.
• Utilize Ethereum’s established network and security protocols for security purposes.

Ethereum has been known to have very high gas fees if there is demand on the Ethereum network, making low-cost transactions challenging.

Polygon DAO Development

Polygon provides an effective way to build DAOs at a lower transaction fee in a layer-2 scaling solution for Ethereum. With a Polygon DAO Build you can achieve:

• Low transaction fees are more affordable for smaller organizations to get a DAO off the ground
• Scalable options for decentralized governance platforms that support a larger community without having to worry about big costs of transactions
• The ability to leverage Ethereum’s infrastructure, while at the same time benefiting from faster and cheaper transactions.

For those wanting an alternative to Ethereum, Polygon is an excellent alternative for a DAO focused on scaling, with lower transaction costs.

Beyond Ethereum and Polygon: Alternative Blockchain Platforms for DAOs

Ethereum and Polygon are likely the most prevalent blockchain platforms for building DAOs, but there are several other platforms that have unique advantages for building decentralized organizations.

Binance Smart Chain (BSC)

BSC DAO builds offer fast, cheap transactions. BSC would be a great selection for organizations that want an affordable alternative to Ethereum, with the bonus of being compatible with Ethereum-based assets and tools.

Solana

With its fast speed and very high transactions per second, Solana could be a great fit for DAOs. Solana DAO builds can be particularly useful for projects that require scalability and speed.

Tezos

Tezos is famous for formal verification. You can develop a Tezos DAO and formal verification ensures the smart

contracts are safe. This makes it a solid base for a high-security DAO.

How to Choose the Right Blockchain for DAO Governance?

When selecting the right blockchain for DAO governance, consider the following:

• Transaction Costs: A costly transaction fee can deter user engagement in the governance function. It is reasonable to select the platform that minimizes transaction costs. Blockchains like Polygon and Binance Smart Chain (BSC) offer cheaper transactions than Ethereum.
• Scalability: A blockchain that offers scalability will allow your DAO to grow without issues. Polygon and Solana are scalable blockchains.
• Security: Security is a primary concern when selecting the blockchain in ensuring the integrity of your DAO (Ethereum is known for its strong security features).
• Developer Ecosystem: Select a blockchain with a strong developer ecosystem and the necessary tools to develop a DAO (Ethereum and Polygon are great platforms to develop a DAO with strong developer ecosystems).

Step-by-Step Process for Creating and Launching a DAO

• Define the purpose of your DAO: What issue is your DAO addressing and how will it function?
• Choosing the appropriate blockchain: After considering the most important aspects of your idea like transaction costs, scalability, and security, decide which blockchain best suits your DAO.
• Create smart contracts: The smart contracts for DAOs will serve as a method of outlining governance, voting, and decision-making processes.
• Launch the DAO: With the smart contracts deployed, you will be able to officially launch your DAO and commence decentralized governance.

External Tools and Frameworks

There are many different tools and frameworks for DAOs, here are a few that you might want to consider:

• Aragon: An all in one simple tool for building decentralized organizations on Ethereum.
• MolochDAO: A framework for building a DAO based on community driven decisions using a simple method.
• DAOstack: A modular platform for creating governance mechanisms for DAOs.

Conclusion:

Technoloader’s Knowledge Group in DAO Development creating a DAO takes deliberate planning, a burgeoning blockchain platform, and the right tools. It is selecting the blockchain such as the beautiful robust Ethereum (or having the option to use polygon for having wide scalability), or new blockchain companies expanding rapidly such as Solana, Tezos, etc all being interesting additions for launching a DAO. Each platform has its own advantages for DAO development. At Technoloader, we have the right direction to instruct organizations to start and scale its DAO on the blockchain platform best for the organization. Our insight in blockchain development for DAOs, smart contracts for DAOs, and decentralized governance, enables us to support a successful DAO project.

If you are interested in creating a DAO or need any expertise on DAO development services, the Technoloader team is here to walk you through each phase of the process - Contact us today to bring your decentralized idea to life!