DAO (Decentralized Autonomous Organization)
An organization governed by smart contracts and token holder votes rather than traditional management.
Explained Simply
A DAO is an organization where rules are encoded in smart contracts and decisions are made by token holder votes. Members propose and vote on changes — from treasury spending to protocol upgrades. Major DAOs include MakerDAO, Uniswap, and Aave. DAOs represent a new form of coordination where code enforces rules transparently. Challenges include voter apathy, plutocracy (rich holders dominating votes), and legal ambiguity around liability and taxation.
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