- What do we mean by DAOs?
A DAO, or Decentralized Autonomous Organization, is a new form of human organizational structure that enables people to work towards a shared goal. DAOs operate in a more distributed, transparent, and trust-minimized manner than traditional organizations. They use blockchain-based smart contracts to execute decisions and allocate ownership, making them transparent to members and resistant to tampering.
Despite the term 'autonomous', DAOs are not fully self-governing. They consist of human members and require manual actions, like voting, code deployment, and proposal discussions. The term 'autonomous' refers to certain DAO functions being hardcoded as immutable smart contracts, though human interaction is still necessary for these contracts to execute actions.