A DAO is a decentralized autonomous organization that runs smart contracts on the blockchain. DAOs can be set up to run any business model and utilize a range of features, including voting systems, fundraising and crowd-curated reputation systems. The Ethereum platform was specifically developed for creating decentralized autonomous organizations through smart contracts.
DAO’s are a form of self-governing technology. They allow a group of people to cooperate and make decisions together, collectively. By using computer code instead of traditional management structures, DAO’s aim to remove human error and bias from the equation while increasing efficiency and productivity.
The most well-known DAO is The DAO, a virtual investment fund that raised $150 million in funding during its initial coin offering (ICO). In 2016, The DAO made headlines when it was hacked by exploiting a bug in its smart contracts code.
A DAO operates on the terms and conditions defined in the smart contract. The smart contract is a set of rules that defines how the organization will function, including:
A DAO is a form of self-governing technology that allows a group of people to cooperate and make decisions together, collectively.
It’s called decentralized autonomous organization because it’s an organization with no central authority or leader.
DAOs are a new and exciting form of self-governing technology that allows a group of people to cooperate and make decisions together, collectively. They are designed to operate on the terms and conditions defined in their smart contracts. In other words, they are autonomous agents that give you control over your own wealth without having to rely on third parties like banks or governments for help when things go wrong!
