DAO (Decentralized Autonomous Organization)
governance · organization · defi
A DAO is an on-chain organization where members coordinate proposals, treasury actions, and rules through transparent governance processes.
A Decentralized Autonomous Organization (DAO) is a member-governed organization that uses blockchain tools for proposals, voting, treasury management, or execution. Many DAOs still depend on off-chain discussion, legal wrappers, multisigs, or delegates, so "autonomous" is often partial rather than absolute.
DAO governance is often token-weighted, though some systems use reputation, one-member-one-vote, delegated voting, or credential-based models. Proposals are commonly discussed off-chain and executed through time-locked contracts, multisigs, or governor contracts.
DAOs face coordination problems, voter apathy, plutocracy, governance capture, and legal uncertainty. Smart contract bugs or treasury key mismanagement can be severe because funds and permissions are often concentrated in governance systems.
Related terms
Token
→A transferable or accountable unit defined by a blockchain protocol, smart contract, or application ledger.
blockchain · asset
Decentralized Exchange
→A decentralized exchange (DEX) lets users trade digital assets from their wallets through smart contracts or peer-to-peer settlement.
trading · exchange · blockchain
DeFi
→DeFi uses smart contracts to provide permissionless financial services such as trading, lending, borrowing, and asset issuance.
blockchain · finance · concept