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A decentralized autonomous organization (DAO) is a governance structure built on blockchain technology, operating without centralized leadership. Instead of being managed by a traditional board of directors or executives, decisions in a DAO are made by stakeholders through a consensus voting process. Smart contracts, which are self-executing programs on a blockchain, automate the governance process, ensuring transparency and immutability.DAOs are designed to be fully transparent, with all votes and financial transactions recorded on the blockchain. This decentralized structure allows for more democratic decision-making, where each member has a say based on their share in the organization.
MakerDAO is a well-known DAO that governs the DAI stablecoin, allowing token holders to vote on proposals related to the platform's development.
• Governed by smart contracts and member consensus.
• Transparent decision-making with decentralized control.
• Common in decentralized finance (DeFi) and blockchain projects.
Members vote on proposals, and decisions are executed via smart contracts when a consensus is reached.
DAOs provide transparency, decentralization, and collective decision-making, reducing the risk of corruption or mismanagement.
Yes, anyone can join a DAO by purchasing the governance tokens associated with the organization.
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