How does a DAO raise money?

To fuel its operations and initiatives, a DAO must secure funding. One of the primary methods for accomplishing this is through the issuance of tokens. These tokens represent a digital currency that is inherently linked to the smart contract, providing a means for investors to participate in the DAO's ecosystem.

The process of raising funds through token issuance can occur through either public or private offerings. Public offerings involve making the tokens available to a wider audience, while private offerings are targeted towards select investors.

The funds generated from these token sales are subsequently directed towards the DAO's treasury. This treasury serves as the financial backbone of the DAO, enabling it to execute its plans and initiatives without relying on external sources of funding.

BTCC, a leading cryptocurrency exchange, offers a range of services that cater to the needs of DAOs and other participants in the blockchain ecosystem. Among its offerings are spot trading, which allows users to buy and sell cryptocurrencies at current market prices.

The establishment of a DAO begins with the formulation of a fundamental set of rules, which are then integrated into smart contracts. These contracts serve as the backbone of the DAO, ensuring its operations are governed by a predefined set of guidelines.