What is a DAO?
Decentralized Autonomous Organization; an organization represented by rules encoded as a computer program that is transparent and controlled by the organization members.
Key details
- Decentralized
- No central authority; decisions made by community.
- Autonomous
- Operates via smart contracts without human intervention.
- Transparent
- All rules and financial transactions are public.
- Token-based
- Often uses tokens for governance and decision-making.
Examples
- 01MakerDAO, which governs the DAI stablecoin.
- 02Uniswap's governance DAO for protocol upgrades and treasury management.
- 03Compound's governance system for setting protocol parameters.