What is a DAO?

Decentralized Autonomous Organizations (DAOs) are the future of governance. They eliminate hierarchy by using blockchain-based decision-making where token holders collectively control a community's funds, treasury, and mission.

What are DAOs?

DAOs are organizations managed by smart contracts on blockchain networks. Instead of a traditional corporate structure, DAOs use token-based voting systems where members propose and fund initiatives directly. This creates communities where users are owners, not employees.

How DAOs Operate

In a DAO, governance decisions are made through proposals that require voting. Token holders stake their tokens to vote, and proposals with sufficient support execute automatically via smart contracts. This creates a completely decentralized decision-making process.


                                    // Example governance token
                                    interface IDAO {
                                        function vote(uint proposalID, bool support) external;
                                    }

DAO treasuries hold funds in blockchain wallets. All spending requires community approval. This creates complete transparency - anyone can audit the DAO's financial records in real-time on the blockchain.

• Funds stored in multi-signature wallets
• Spending proposals with voting requirements
• Full public audit trail

Why DAOs Matter

Transparent Governance

Every decision is recorded on the blockchain, creating an immutable audit trail. No hidden agendas or backdoor deals.

Global Participation

Anyone with internet access can join a DAO, regardless of location or background. This creates truly inclusive communities.

No Intermediaries

Decisions are made directly by participants, eliminating the need for corporate managers or bureaucracy.

Active DAOs

Decentraland (MANA)

A DAO that governs a decentralized virtual reality platform where users create, experience, and monetize content.

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ConstitutionDAO

A short-lived DAO that aimed to buy a rare copy of the US Constitution through crowd-sourced funding.

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