What is a DAO?

What is a DAO?

A Decentralized Autonomous Organization(DAO) is an entity without central leadership. Instead DAOs are governed by the community around it. They are usually organized around a specific set of rules usually enforced by a smart contract.

DAOs are Internet-native organizations, owned and managed collectively by their members. They are a key player in the crypto landscape and some even have their own token.

They have built-in treasuries, which can only be accessed with the approval of their members. Decisions are made through proposals on which the group votes for a fixed time period.

A DAO works without hierarchical management and can serve many purposes. For instance:

• Freelancers who pool their funds and build a creative agency.
• Charities where members get to approve donations.
• Group-owned venture capital firms.
• Building a collection of NFTs with other people.

These are just some of the possible uses for them but the actual opportunities are endless.