Protocols & Platforms
DAO
Decentralized Autonomous Organization
Organization coordinating decisions through governance rules
Definition
A DAO coordinates decisions through defined governance rules, often token voting and onchain execution. The name does not prove decentralization: delegates, multisigs and upgrade keys may control the actual outcome.
Example
With 1 million votes outstanding and a 10% quorum, 120,000 participating votes clear quorum. If 80,000 support and 40,000 oppose, a simple-majority proposal passes, assuming no other threshold.
How it works
A proposal defines an action and enters a voting period. Quorum and approval rules determine passage; execution may be automatic after a timelock or require a separate signer group.
Risks to Consider
- Concentrated voting power can capture treasury spending
- A malicious executable proposal can transfer funds
- A multisig may override or refuse a nominal community vote
Common Questions
Is a DAO the same thing as a governance token?
No. A token is one possible voting credential; the DAO also includes proposal rules, execution permissions and treasury control.
