DAOs (Decentralized Autonomous Organizations)

Decentralized Autonomous Organizations (DAOs) are digital organizations run by smart contracts on a blockchain. Unlike traditional companies, they have no central leadership; decisions are made collectively by members through voting. Each member typically holds tokens that represent their voting power. DAOs operate transparently and automatically, meaning rules and transactions are recorded and enforced by the blockchain. This structure allows for more democratic governance, as everyone can participate in shaping the organization’s direction, projects, and use of funds, promoting collaboration and community-driven initiatives without a hierarchical management system.