Just Good to Know: What is a DAO?

A Decentralized Autonomous Organization is a way to manage crypto projects without a central authority. Members vote on decisions using tokens, ensuring transparency and fairness. Smart contracts execute the rules automatically.

🔥 Upsides

• Democracy: Anyone with tokens can vote, giving power to the community.

• Transparency: All decisions and transactions are on-chain, open for all to see.

• Global Access: Anyone, anywhere, can join and contribute.

• Efficiency: Smart contracts cut bureaucracy, automating processes.

❕ Downsides

• Security Risks: Hacks (e.g. The $50M DAO Hack of 2016)can drain funds.

• Slow Decisions: Voting can delay urgent actions.

• Inequality: Wealthy token holders may dominate votes.