Decentralized Autonomous Organization

Decentralized Autonomous Organization (DAO) is a novel organizational structure that operates based on blockchain technology and smart contracts. DAOs aim to create a decentralized and self-governing entity that functions without the need for traditional hierarchical management. Participants in a DAO collectively make decisions and execute actions through voting mechanisms encoded in smart contracts. These decisions can encompass various aspects, such as fund allocation, project proposals, and governance rules. DAOs aim to enhance transparency, reduce the need for intermediaries, and provide a more inclusive way for stakeholders to contribute and influence the direction of the organization. While DAOs offer innovative possibilities, challenges related to scalability, security, and decision-making processes have been subjects of discussion.