Decentralized Autonomous Organisation (DAO)

A Decentralized Autonomous Organization (DAO) is an entity managed by smart contracts on a blockchain, eliminating traditional hierarchical management. Members participate in decision-making by voting on proposals, with each member's influence often proportional to their token holdings. This structure promotes transparency and decentralization, as all transactions and rules are recorded on the blockchain. DAOs are used for various purposes, such as managing investments, funding projects, or governing protocols. Their autonomous nature allows for efficient operation without centralized control, aligning with the principles of decentralized finance (DeFi).