# What Is a 'Decentralized Autonomous Organization' (DAO)? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

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## What Is a ‘Decentralized Autonomous Organization’ (DAO)?

A DAO is an organization represented by rules encoded as a transparent computer program, controlled by organization members, and not influenced by a central government. The rules are enforced by the blockchain's code.

Decisions are made via proposals and voting, typically using governance tokens. The goal is to create a fully autonomous and transparent structure for managing funds and making operational changes.

- [How Can a Smart Contract Be Used to Create a Decentralized Autonomous Organization (DAO)?](https://learn.greeks.live/path/how-can-a-smart-contract-be-used-to-create-a-decentralized-autonomous-organization-dao/)

- [What Is a Decentralized Autonomous Organization (DAO) and How Can It Govern a Derivatives Protocol?](https://learn.greeks.live/path/what-is-a-decentralized-autonomous-organization-dao-and-how-can-it-govern-a-derivatives-protocol/)

- [What Is the Concept of a Decentralized Autonomous Organization (DAO)?](https://learn.greeks.live/path/what-is-the-concept-of-a-decentralized-autonomous-organization-dao/)

- [Can Quadratic Voting Be Applied to Decisions beyond Funding, Such as Protocol Upgrades?](https://learn.greeks.live/path/can-quadratic-voting-be-applied-to-decisions-beyond-funding-such-as-protocol-upgrades/)

- [What Is a ‘Governance Token’ and How Does Its Utility Affect Treasury Decisions?](https://learn.greeks.live/path/what-is-a-governance-token-and-how-does-its-utility-affect-treasury-decisions/)

- [How Does a Tokenized Security Handle Voting Rights When the Underlying Asset Has Governance Features?](https://learn.greeks.live/path/how-does-a-tokenized-security-handle-voting-rights-when-the-underlying-asset-has-governance-features/)

- [What Is a “DAO” and How Does It Utilize Smart Contracts for Governance?](https://learn.greeks.live/path/what-is-a-dao-and-how-does-it-utilize-smart-contracts-for-governance/)

- [What Is a ‘Decentralized Autonomous Organization’ (DAO) and How Does It Relate to Contract Governance?](https://learn.greeks.live/path/what-is-a-decentralized-autonomous-organization-dao-and-how-does-it-relate-to-contract-governance/)

## Discover More

### [What Is the "Funding Rate" in Perpetual Futures and How Does It Affect a DAO's Hedge Cost?](https://learn.greeks.live/path/what-is-the-funding-rate-in-perpetual-futures-and-how-does-it-affect-a-daos-hedge-cost/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the "Funding Rate" in Perpetual Futures and How Does It Affect a DAO's Hedge Cost?](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetric-Digital-Asset-Volatility-Surface-Intersection-Conceptualizing-Perpetual-Futures-Execution.webp)

A periodic payment between long/short traders to keep the price pegged to spot. A positive rate increases the DAO's short-hedge cost.

### [How Does a DAO Differ from a Traditional 'Limited Liability Company' (LLC)?](https://learn.greeks.live/path/how-does-a-dao-differ-from-a-traditional-limited-liability-company-llc/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a DAO Differ from a Traditional 'Limited Liability Company' (LLC)?](https://learn.greeks.live/wp-content/uploads/2025/10/Layered-Interstitial-Gaps-Revealing-Off-White-Spherical-Object-Within-Console-Architecture.webp)

An LLC is a legally recognized, centrally managed entity with limited liability; a DAO is code-based and decentralized.

### [Can a DAO Be Held Legally Accountable for a Breach of Fiduciary Duty?](https://learn.greeks.live/path/can-a-dao-be-held-legally-accountable-for-a-breach-of-fiduciary-duty/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Can a DAO Be Held Legally Accountable for a Breach of Fiduciary Duty?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Finance-Synthetic-Asset-Collateralization-Mechanism-Unveiling-Layer-Two-Settlement-Finality.webp)

Generally difficult, as DAOs lack legal personality; accountability may fall on individual members or founders who control the operations.

### [What Is the Risk of "Assignment" in a Covered Call Strategy and How Does It Affect the DAO?](https://learn.greeks.live/path/what-is-the-risk-of-assignment-in-a-covered-call-strategy-and-how-does-it-affect-the-dao/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Risk of "Assignment" in a Covered Call Strategy and How Does It Affect the DAO?](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetric-Hedging-Instrument-Crossing-Over-Digital-Asset-Volatility-Surface-Visualization.webp)

The DAO is forced to sell its underlying token at the strike price when the call option buyer exercises their right.

### [Can a Decentralized Options Protocol Use a Decentralized Stablecoin for Margin?](https://learn.greeks.live/path/can-a-decentralized-options-protocol-use-a-decentralized-stablecoin-for-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Can a Decentralized Options Protocol Use a Decentralized Stablecoin for Margin?](https://learn.greeks.live/wp-content/uploads/2025/10/Hydrodynamic-Equilibrium-of-Tokenized-Assets-on-a-High-Frequency-Trading-Surface.webp)

Yes, decentralized stablecoins provide low-volatility, on-chain assets for margin and settlement, maintaining the protocol's trustless nature.

### [How Do Smart Contracts Facilitate the Process of Decentralized Autonomous Organizations (DAOs)?](https://learn.greeks.live/path/how-do-smart-contracts-facilitate-the-process-of-decentralized-autonomous-organizations-daos/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do Smart Contracts Facilitate the Process of Decentralized Autonomous Organizations (DAOs)?](https://learn.greeks.live/wp-content/uploads/2025/10/Reflective-Geometric-Abstraction-Modeling-Decentralized-Finance-Volatility-Surface-Quotations.webp)

Smart contracts are the backbone of DAOs, automating their governance, voting, and treasury management.

### [What Is a "Decentralized Autonomous Organization" (DAO)?](https://learn.greeks.live/path/what-is-a-decentralized-autonomous-organization-dao-3/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is a "Decentralized Autonomous Organization" (DAO)?](https://learn.greeks.live/wp-content/uploads/2025/10/Crystallized-Geometric-Structures-Illustrating-Complex-Financial-Derivative-Payoff-Profiles-on-Blockchain-Ledgers.webp)

An organization governed by rules encoded in smart contracts, controlled by token holders, and operating without central authority.

### [What Is the Significance of the Bvlgari Case regarding DAO Liability?](https://learn.greeks.live/path/what-is-the-significance-of-the-bvlgari-case-regarding-dao-liability/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Significance of the Bvlgari Case regarding DAO Liability?](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetrical-Biomorphic-Hull-Configuration-Representing-Cryptocurrency-Derivatives-Hedging-Strategies.webp)

The case established that DAOs can be served via their online forum and that token holders can face joint and several liability.

### [What Is the Legal Status of a DAO in the US?](https://learn.greeks.live/path/what-is-the-legal-status-of-a-dao-in-the-us/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Legal Status of a DAO in the US?](https://learn.greeks.live/wp-content/uploads/2025/10/Macro-Examination-of-Transparent-Acrylic-Components-Representing-Decentralized-Exchange-Liquidity-Pool-Mechanisms.webp)

Unclear and evolving; often treated as a general partnership with unlimited liability, though some states offer DAO LLC status.

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