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Acronyms Dictionary

DAO

Definition

Decentralized Autonomous Organization. An organization controlled by rules encoded as a computer program.

Deep Dive

A DAO is a type of bottom-up entity structure with no central authority. Decisions are made by members who hold native tokens, and these decisions are executed automatically via smart contracts on a blockchain.

Examples & Use Cases

  • 1A venture fund DAO where token holders vote on which startups to invest in
  • 2A protocol DAO managing the upgrades and parameters of a DeFi platform
  • 3A community DAO where members vote on how to spend a shared treasury

Related Terms

DeFiWeb3Blockchain

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