DeFi & Protocols Also: DAO

Decentralized Autonomous Organization DAO

An organization governed by token holders through on-chain proposals and voting rather than traditional management.

A DAO is an entity whose rules are encoded in smart contracts and executed automatically based on token-holder votes, with no central management required. DAOs govern protocol parameters, treasury allocation, and strategic decisions for many DeFi protocols. In practice, most DAOs face challenges with voter apathy, plutocratic dynamics, and the tension between decentralized governance and rapid decision-making.

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