A Decentralized Autonomous Organization (DAO) is a software entity that operates on a blockchain, providing users with a built-in framework for collectively managing its code.
DAOs distinguish themselves from traditional organizations governed by boards, committees, and executives. Instead of being managed by a limited group of individuals, DAOs rely on a set of rules written in code and enforced by a computer network running shared software.
To become a member of a DAO, users typically need to acquire its cryptocurrency and join the DAO. Owning this asset often grants users the authority to vote on proposals and updates based on the quantity they hold.
The inaugural successful instance of a DAO was BitShares, a virtual e-commerce platform connecting merchants and customers without the necessity for a central governing entity. At that time, BitShares was denoted as a Decentralized Autonomous Company (DAC), a term coined by its founder, Dan Larimer.
Interested in learning more about cryptocurrency? Feel free to explore BITOY's
Comments
0 comments
Article is closed for comments.