Ethereum DAO (Decentralized Autonomous Organization) is a decentralized autonomous organization operating on the Ethereum blockchain. It is a form of digital organization managed by smart contracts and a community of participants, rather than centralized leadership.
Key features of Ethereum DAOs:
1. Decentralization
Decisions are made by voting among participants, not by one person or group.
2. Smart Contracts
All rules, governance, and transactions are recorded in the code of smart contracts on the Ethereum blockchain.
3. Transparency
Anyone can verify the DAO code and voting history, as they are stored on the blockchain.
4. Automation
A DAO can autonomously perform actions once certain conditions are met (for example, transferring funds if the vote was successful).
Example: The DAO (2016)
One of the first and most famous DAOs was launched in 2016 on Ethereum.
It raised about 150 million dollars in ETH from investors around the world.
However, due to a bug in the smart contract code, about 60 million dollars were stolen, leading to a hard fork of Ethereum: two networks emerged — Ethereum (ETH) and Ethereum Classic (ETC).
Examples of modern DAOs on Ethereum:
MakerDAO — manages the DAI stablecoin
Uniswap DAO — decentralized governance of the Uniswap protocol
Aave DAO — for managing the Aave lending DeFi protocol
The role of Ethereum in DAOs:
Ethereum provides infrastructure:
blockchain and smart contracts
DAOs can use ETH as a means of payment or for voting
Ethereum ensures security and decentralization
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