Today we are going to talk about the DAO:
A DAO (Decentralized Autonomous Organization) is an organization managed by a community via the blockchain, without a central direction.
The rules are written in smart contracts and all important decisions are made by member voting.
Key points of a DAO
1. Decentralized
No CEO or board of directors: power is distributed among token holders.
2. Autonomous
Rules and actions are automated by smart contracts (Ethereum or other blockchains).
3. Transparency
All decisions and transactions are visible on the blockchain.
4. Governance
Members vote to decide on projects, budgets, or developments of the DAO.
The more governance tokens you hold, the more weight your vote carries (according to the chosen model).
5. Common uses
Management of common treasuries (decentralized investment funds).
Creation and funding of community projects.
Governance of DeFi protocols (Uniswap, AaveâŠ).
Artistic and NFT communities.
đĄ Simple example:
Imagine an investment club without a president, where each member has a vote proportional to their contribution, and where all the money and rules are managed by a program that is impossible to tamper with. Thatâs a DAO.