Home Glossary Decentralized Autonomous Organization (DAO)

Decentralized Autonomous Organization (DAO)

A decentralized autonomous organization (DAO) is a blockchain-based entity governed by rules encoded in smart contracts rather than centralized leadership. Decisions within a DAO are typically made through proposals and voting by token holders or members. These organizations operate transparently, with actions and governance processes recorded on the blockchain. DAOs are commonly used to manage protocols, treasuries, and community-driven projects. Smart contracts automate execution once governance decisions are approved. DAOs enable decentralized coordination and collective decision-making without intermediaries.