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DAO (Decentralized Autonomous Organization)
D
Definition
An organization represented by rules encoded as a computer program that is transparent and controlled by the organization members.
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Concept Diagram
Key Takeaways
1
DAOs are organizations governed by smart contracts and token-holder voting instead of centralized management
2
All decisions, votes, and treasury movements are transparent and recorded on-chain
3
Token holders vote on proposals ranging from protocol upgrades to treasury allocation
4
DAOs enable global coordination without trust in any single individual or entity
Practical Example
Uniswap DAO holds $3B in its treasury. Token holders vote on proposals like 'Deploy $50M to Arbitrum liquidity mining program.' If the vote passes, the smart contract automatically executes the transfer — no CEO or board needed.
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Related Terms
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VeTokenomicsA token model where users lock tokens for a period to gain 'Vote Escrowed' power, aligning long-term holders with protocol governance.
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dApp (Decentralized Application)An application built on a decentralized network that combines a smart contract and a frontend user interface.
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Governance TokenA cryptocurrency that allows its holders to vote on decisions that govern the development and operation of a blockchain project.
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Smart ContractA self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
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