Decentralized Autonomous Organization(DAO)
An organization governed by smart contracts and token-holder voting rather than traditional corporate structure.
In-Depth Explanation
DAOs coordinate through on-chain governance—tokenholders vote on proposals that execute automatically if passed. DAOs manage protocol parameters, treasury allocations, and strategic decisions. Challenges include voter apathy, plutocracy concerns, and slow decision-making.
Related Terms
Governance Token
A token that grants voting rights over protocol decisions, parameters, and treasury allocation.
Treasury
Protocol-owned assets held in smart contracts, typically controlled by governance for funding development and operations.
Vote-Escrowed Token
veA token locking mechanism where users lock tokens for a period to receive boosted voting power and rewards.
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