Decentralised Autonomous Organisations (DAOs) represent an innovation at the intersection of blockchain technology and governance.
Key points
- These digital entities operate without centralised control and are governed by smart contracts and the consensus of their members, often utilising cryptocurrencies as a means of decision-making and resource allocation.
- DAO is an organisation represented by rules encoded as a computer program that is transparent, controlled by the respective organisation members, and not influenced by a government.
- The idea behind DAOs is to create self-sustaining, community-driven entities governed by smart contracts on blockchain networks.
- These smart contracts automatically execute predefined rules without the need for intermediaries, ensuring trust through code rather than traditional authorities.
- One of the most important aspects of DAOs is their potential to change the idea of collaboration.
- They enable global, borderless cooperation on an unprecedented scale. Participants, often referred to as token holders, can propose and vote on decisions related to the organisation’s goals and resources.
- This decentralised decision-making process ensures that no single entity holds undue influence.
