Decentralized Autonomous Organization (DAO)
Short Description:
A decentralized autonomous organization (DAO) is a blockchain-based entity that operates without a central authority, using smart contracts to automate its functions.
Main Description:
A decentralized autonomous organization (DAO) is a blockchain-based entity that operates without a central authority, using smart contracts to automate its functions. Members of a DAO participate in decision-making collectively by voting on proposals, often using tokens that represent their ownership or stake in the organization.
This governance model fosters transparency and inclusivity, as all decisions and actions are recorded on the blockchain, creating a clear and accessible record. DAOs can serve a variety of purposes, from managing investment funds to supporting community projects or overseeing decentralized applications, making them an important development in the world of decentralized finance and collaborative initiatives.