Definition
Decentralized Autonomous Organization. An organization governed by smart contracts and community voting rather than traditional management structures.
Why It Matters
DAOs represent a new form of collective decision-making and governance, enabling communities to manage treasuries and make decisions without centralized leadership.
Example
MakerDAO allows token holders to vote on changes to the DAI stablecoin protocol, including interest rates and collateral requirements.
Related Terms
Smart Contract
Governance
Token
Web3