How Does a Decentralized Autonomous Organization (DAO) Work?
A DAO operates without central leadership, using smart contracts on a blockchain to enforce its rules. Members, typically holders of the DAO's cryptocurrency token, vote on proposals to make decisions collectively.
This structure allows for transparent, automated, and member-owned governance. All transactions and rules are recorded on a public ledger, making them auditable by anyone.
DAOs are funded through token issuance and manage their own treasuries.
Glossar
Token Issuance
Framework ⎊ Within the evolving landscape of sustainable finance, token issuance represents a foundational framework for channeling capital towards environmentally and socially responsible initiatives.
Dao
Governance ⎊ A Decentralized Autonomous Organization, or DAO, represents a new form of organizational structure where decision-making authority is distributed among token holders rather than concentrated in a central entity.
Decentralized Autonomous Organization (DAO)
Architecture ⎊ A Decentralized Autonomous Organization represents an organizational architecture governed by code and executed on a blockchain, removing the need for traditional hierarchical management.
Smart Contracts
Function ⎊ Smart contracts are self-executing agreements with the terms of the agreement directly written into lines of code, residing on a decentralized ledger.