What is DAO (decentralised autonomous organisation)?
On-chain governance by token holders, usually with proposals, votes and a treasury.
A DAO coordinates spending and protocol changes through token-weighted votes. The treasury and the rules sit in contracts rather than in a company bank account.
Token voting tends toward the largest holders, and voter turnout is often low. Ask who actually controls the quorum before calling it community-run.
Related terms
- Governance tokenTokens
A token that grants voting rights over a protocol's parameters and treasury.
- Smart contractDeFi
Code deployed to a blockchain that runs automatically when its conditions are met.