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DAO
(Decentralized Autonomous Organization)
A DAO (Decentralized Autonomous Organization) is a blockchain-based entity governed by smart contracts and community voting, eliminating centralized control. Members use governance tokens (like ETH-based tokens) to propose and decide on treasury allocations, protocol upgrades, or investments.
Notable examples include MakerDAO (issues DAI stablecoin) and ConstitutionDAO's failed 2021 bid for the U.S. Constitution. While DAOs enable global collaboration (e.g., funding DeFi projects), they face legal gray areas—the SEC sued a DAO in 2023 for unregistered securities. Security risks persist ($1B+ lost to DAO hacks like The DAO in 2016). Tools like Snapshot and Discord facilitate decentralized governance, but voter apathy remains a challenge.
Notable examples include MakerDAO (issues DAI stablecoin) and ConstitutionDAO's failed 2021 bid for the U.S. Constitution. While DAOs enable global collaboration (e.g., funding DeFi projects), they face legal gray areas—the SEC sued a DAO in 2023 for unregistered securities. Security risks persist ($1B+ lost to DAO hacks like The DAO in 2016). Tools like Snapshot and Discord facilitate decentralized governance, but voter apathy remains a challenge.