A Decentralized Autonomous Organization (DAO) is a blockchain-based entity that operates through smart contracts and is governed by its members without centralized leadership. DAOs are designed to be transparent, decentralized, and autonomous, relying on predefined rules encoded in smart contracts to execute decisions and manage operations. Members of a DAO hold tokens that typically grant them voting rights, allowing them to propose and vote on initiatives, changes, and governance policies. The decentralized nature of DAOs ensures that no single entity has control, promoting democratic participation and reducing the risk of corruption or manipulation. DAOs can be used for various purposes, including managing decentralized finance (DeFi) projects, pooling investments, or creating decentralized communities. By leveraging blockchain technology, DAOs aim to create more equitable, efficient, and transparent organizational structures.
