What Is Decentralized Autonomous Organization (DAO)?

Krutika Adani

DAO is a blockchain-based entity that is controlled by members with on-chain voting rights.

Each member has voting rights based on the number of governance tokens held by them.

They lack a central governance body and the decision-making is done by voting on different proposals.

A few examples include MakerDAO, Uniswap, BitDAO, and Decentraland.

Though they don’t enjoy full legal recognition, still, they still provide a more democratic decision-making process.