Decentralized Autonomous Organization (DAO)

A decentralized autonomous organization (DAO) is a governance structure built on blockchain technology, operating without centralized leadership. Instead of being managed by a traditional board of directors or executives, decisions in a DAO are made by stakeholders through a consensus voting process. Smart contracts, which are self-executing programs on a blockchain, automate the governance process, ensuring transparency and immutability.DAOs are designed to be fully transparent, with all votes and financial transactions recorded on the blockchain. This decentralized structure allows for more democratic decision-making, where each member has a say based on their share in the organization.

Example

MakerDAO is a well-known DAO that governs the DAI stablecoin, allowing token holders to vote on proposals related to the platform's development.