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DAO

Decentralized Autonomous Organization

What is DAO?

An organization run by smart contracts and token-holder votes instead of executives. Members propose, vote, and manage treasuries collectively. From a business perspective, DAOs are the ultimate community retention tool, skin in the game keeps people engaged.

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In plain words

"A group chat where every decision is voted on with real money on the line — and the rules are enforced by code, not a boss."

How it works

Key takeaways

  • Decisions made by token-weighted voting

  • Treasury managed on-chain, fully transparent

  • No CEO — governance is distributed

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Real-world example

A community treasury holds $2M. Members propose funding a hackathon. Token holders vote yes/no. If it passes, funds move automatically.

Related terms

On-Chain Governance

Token-holder voting on protocol decisions

Smart Contracts

Self-executing code that automates agreements

Retention

Keeping users engaged over time

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