DAO Wrapper
Introduction
Steel DAO
A decentralized autonomous organization (DAO) was developed as a proof of concept to demonstrate the successful implementation of blockchain technology in the management of an international steel company. This case study explores the process of establishing the DAO in Switzerland, its governance model, token distribution, and operational expansion plans.


The Challenge
Developing a Blockchain-Powered DAO Model
The steel company required a well-structured DAO model that allowed for decentralized governance, easy token distribution, an efficient decision-making process and the ability to share revenue with DAO members. The main challenges included creating a suitable legal framework in Switzerland, selecting board members, defining a governance model, and determining the token distribution method.
The Approach
DAO Model and Governance System Implementation
Implementing a successful Decentralized Autonomous Organization (DAO) model and governance system for a traditional company involves several crucial steps. These include understanding the company’s goals and structure, researching existing models and legal requirements, ideating potential models with stakeholder analysis and risk assessment, executing the chosen model through legal documents, token distribution plans, and smart contracts, and testing the model’s resilience and adaptability. Following these steps can ensure the effective implementation of a tailored DAO model and governance system for a steel company.
Legal Framework
To establish a strong legal foundation for the DAO in Switzerland, the association's bylaws were carefully crafted with the help of Swiss legal experts, ensuring compliance with local regulations.
Governance Model
The DAO implemented a voting structure that considers various stakeholder interests and potential conflicts. Members vote on predetermined decisions and the board executes them upon meeting a quorum.
Token Distribution
Two share models - NFT-based and token-based - were proposed for the DAO. The advantages and disadvantages of each were analyzed, considering factors such as liquidity, marketability, and regulatory compliance
Smart Contracts
Smart contracts were developed and deployed on the Ethereum network to automate and secure the DAO's operations. Auditing, scalability, and user-friendliness were ensured for the members.

The Solution
Addressing Challenges Through a Structured Approach
By following a detailed implementation process, a comprehensive DAO model was developed to address legal frameworks, governance, token distribution, and expansion challenges in managing an international steel company. This proof-of-concept DAO demonstrates the successful implementation of blockchain technology in managing the company and highlights the potential benefits of a tailored DAO model for other businesses in the industry.
- Decentralized governance model reduced the need for intermediaries and allows for more transparent decision-making
- Transparent structure increased trust and accountability.
- Automation of processes via smart contracts reduced costs and streamlined operations