DAOs (Decentralised Autonomous Organisations) are organisations run by smart contracts on a blockchain, with governance typically handled by token holders. They operate without centralised leadership, relying on transparent rules encoded in code. Members vote on proposals using governance tokens, and decisions are executed automatically based on the rules set in the smart contracts.
Key Features of DAOs:
Decentralisation—No central authority; decisions are made collectively.
Transparency—All transactions and rules are recorded on a blockchain.
Automation—Smart contracts execute decisions automatically.
Token-Based Governance—Members vote using governance tokens.
Types of DAOs
Investment DAOs
Enabling people to pool capital to invest in specific assets.
Social DAOs
Bringing like-minded people together in online communities.
Philanthropy DAOs
Focusing on supporting social responsibilities towards a shared goal.
Examples of DAOs:
MakerDAO—Manages the DAI stablecoin.
Uniswap DAO—Governs the Uniswap decentralised exchange.
Friends With Benefits (FWB)—A social DAO for creatives and entrepreneurs.