DAO (Decentralized Autonomous Organization)

DAO stands for Decentralized Autonomous Organization. It is an organization that runs on a blockchain network without the need for a central authority to make decisions. Instead, decisions are made through code and voted on by members of the organization.

DAOs are typically governed by smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller written directly into lines of code. These smart contracts can automate many aspects of the organization, such as governing membership, voting on proposals, and allocating funds.

One of the key features of DAOs is their decentralized nature. This means that no single entity has control over the organization, making it resistant to censorship or outside interference. Members of a DAO can participate in decision-making processes and contribute to the organization’s goals without needing to rely on a central authority.

Overall, DAOs offer a new way of organizing and governing communities, businesses, and projects in a transparent and democratic manner on the blockchain.