CROWD-FUNDING IN A DAO EXPLAINED
First of all, crowdfunding, as the name suggests, means the financial resources (money) generated by a large group of people. Individuals come together to provide capital needed to start a business. Individuals who are potential investors can connect through social media or crowdfunding websites.
The decentralized autonomous organization is today the largest crowdfunding system in our world.
HOW DOES CROWDFUNDING WORK
Part of the token is securely stored in a treasury or locked and managed via smart contract. The remaining part of the token is put it for sale. When a member decides to increase their engagement in a DAO, they buy the token, which now serves as the voting leadership token. This money goes into the coffers of the DAO. Potential investors and others can purchase the DAO's tokens, which in turn provides capital to the DAO. Selling these governance tokens is one of the main means of raising funds.
Another typical way money is made in a DAO is through dividends. They make various investments in companies and potential ventures and then receive prorated cash payments from those ventures
Other ways DAO can raise funds are DeFi lending, fundraising through Nfts, and so on.