# Mechanism

A DAO on Akad.Finance can be created by deploying a smart contract on the blockchain that governs the decision-making process of the organization. AKAD tokens can be used as voting power in the DAO, meaning that the number of AKAD tokens a user holds determines their voting power in the DAO. For example, if a user holds 100 AKAD tokens and another user holds 50 AKAD tokens, the first user would have more voting power in the DAO.

Let's say that a member of the DAO submits a proposal to add a new asset to the platform. The proposal is evaluated by the other members of the DAO, who can vote on whether or not to approve the proposal. Each member's voting power is proportional to the number of AKAD tokens they hold.

If the proposal is approved, the DAO's smart contract will automatically execute the necessary actions to add the new asset to the platform. The DAO members who voted in favor of the proposal will be rewarded with incentives or rewards, which can be distributed according to Islamic finance principles such as profit-and-loss sharing (mudharabah) or cost-plus (murabahah) contracts.

This use case demonstrates how AKAD can be used as a governance token on a DAO, enabling users to participate in the decision-making process of the platform and have a say in its future development. It also shows how the use of AKAD tokens for voting and decision-making can be aligned with Sharia principles by ensuring that all activities are conducted in a transparent and ethical manner, and that rewards are distributed according to Islamic finance principles.


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