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A decentralized autonomous organization (DAO) is a management structure that uses blockchain technology to automate some aspects of voting and transaction. A DAO, or �Decentralized Autonomous Organization,� is a community-led entity with no central authority. It is fully autonomous and transparent. DAOs use smart contracts to work in a blockchain. These smart contracts are made of chunks of code that help execute operations automatically.

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One is that it limits a large part of the population who may not be equipped with the right technology or the knowledge to make use of the technology from using it. Governance is conducted through a series of proposals that members vote on through the blockchain, [16] and the possession of more governance tokens often translates to greater voting power. Bloomberg News. Table of Contents Expand.