Definition ∞ Autonomous economic actors are self-executing software programs or decentralized protocols that conduct economic activities without direct human intervention. These entities operate based on predefined rules encoded within smart contracts on a blockchain. They can manage assets, execute trades, and provide services, functioning as independent participants in digital markets. Their operations are transparent and verifiable, relying on cryptographic security.
Context ∞ The concept of autonomous economic actors is central to understanding the progression of decentralized finance (DeFi) and the broader Web3 ecosystem. News often covers their growing influence in areas such as automated market making, lending protocols, and governance within decentralized autonomous organizations (DAOs). Regulatory bodies are increasingly examining the legal and operational implications of these self-governing digital entities.