Crypto Clarified: What is a DAO?
August 26, 2022
Watch Time 1:24 MIN
DAO is an Acronym for Decentralized Autonomous Organization. It’s a community centric entity with no central authority. To simplify even more, a community of members with shared interests or goal all built upon a blockchain. It’s become a method of choice for groups to make decisions as it’s fully autonomous and transparent, with ideas voted upon by members and actions executed automatically via smart contracts; Programs that are stored on the blockchain and execute when certain conditions are met.
This structure is ideal for projects and companies who want to pass on the delegation of control to their various stake holders. Individuals then vote in their best interest based on their stake in the project. For example the number of tokens they own.
In short, the DAO aligns the interests of all members. Meaning the better decisions that are made by members of the DAO, the more successful their project may be, increasing the value of their membership and tokens they own.
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