Decentralized Autonomous Organization
A Decentralized Autonomous Organization (DAO) is an organization represented by rules encoded as a computer program that is transparent, controlled by organization members, and not influenced by a central government. It operates through smart contracts on a blockchain, enabling decentralized decision-making and automated execution of governance processes. DAOs are designed to be self-governing entities where token holders vote on proposals to manage resources and operations.
Developers should learn about DAOs when working on blockchain projects, decentralized applications (dApps), or systems requiring transparent and trustless governance, such as in DeFi protocols, NFT communities, or open-source software funding. It's crucial for implementing automated governance mechanisms, reducing reliance on centralized authorities, and enabling community-driven management in web3 ecosystems.