meaning of dao

An acronym for 'Decentralized Autonomous Organization.' A DAO is an organization represented by rules encoded as a transparent computer program, controlled by the organization's members, and not influenced by a central authority. It typically operates on a blockchain, using smart contracts to automate decision-making and enforce rules, with members holding governance tokens to vote on proposals.

The community proposed a new funding model for the project through a DAO.

Membership in the DAO is often granted by holding a specific amount of its native cryptocurrency token.

Synonyms: decentralized organization, blockchain-based organization

Etymology: An acronym formed from the initial letters of 'Decentralized Autonomous Organization.' The concept gained prominence with the advent of blockchain technology, particularly with the development of smart contracts on platforms like Ethereum in the mid-2010s.

Cultural Notes: DAOs represent a significant shift in organizational structure within the Web3 and blockchain ecosystem, aiming to create more transparent, democratic, and censorship-resistant entities. They embody the ethos of decentralization by distributing power among token holders rather than concentrating it in a traditional hierarchy. While offering potential benefits like increased transparency and community engagement, they also present challenges related to legal status, decision-making efficiency, and security vulnerabilities.

Common Phrases: DAO governance, DAO token, launch a DAO, DAO treasury

Word Frequency: uncommon

Category: crypto

Language: English

Pronunciation: /diː eɪ oʊ/