DAO Advanced
A DAO (decentralised autonomous organisation) is a community-run entity governed by token-holder votes and smart contracts rather than a traditional management structure.
DAOs coordinate treasuries and decisions on-chain. Governance can be transparent but also slow, and voting power often concentrates among large token holders.
Key takeaways
- A DAO is an organisation coordinated by rules written in smart contracts rather than by a central authority.
- Members typically hold governance tokens and vote on proposals, so decisions can be made collectively and on-chain.
- DAOs face real risks, including code exploits, low voter turnout, and unclear legal status in many countries.
DAO — frequently asked questions
What does a DAO actually do?
It lets a community govern shared funds or a protocol through token-based voting, with decisions enforced automatically by code.
Are DAOs legally recognised?
Their legal status varies and is often uncertain; only a few jurisdictions offer specific recognition, so participants may bear real responsibility.
New to crypto, or filling in the gaps? Work through the essentials in Learn, browse every term A–Z, or see live prices for the coins these concepts power.