DAO (Decentralized Autonomous Organization)
Also known as: Decentralized Autonomous Organization, Blockchain Organization, Decentralized Governance, On-chain Organization
A DAO (Decentralized Autonomous Organization) is a blockchain-based organization governed by smart contract rules instead of a central authority.
A DAO (Decentralized Autonomous Organization) is a blockchain-based entity governed by smart contracts rather than centralized leadership. These contracts define the rules and manage the organization’s funds, enabling decentralized decision-making.
DAO members hold governance tokens, which allow them to vote on key proposals, from funding allocations to protocol upgrades—creating a transparent and democratic system.
DAOs are used for purposes such as investment collectives, protocol governance, grants distribution, and freelance coordination.
The concept rose to fame with The DAO in 2016 on Ethereum, sparking global interest despite a security incident.
While DAOs promote transparency and decentralization, they also face legal, security, and governance challenges as they evolve.