Autonomous Economy

Definition ∞ An autonomous economy describes a system where economic activities function with minimal human oversight. This concept envisions economic interactions, transactions, and resource allocations managed primarily by self-executing protocols, smart contracts, and decentralized autonomous organizations (DAOs). Within digital assets, it refers to ecosystems where value transfer, governance, and service provision occur through programmatic logic on blockchain networks. Such systems aim for increased efficiency, transparency, and censorship resistance.
Context ∞ The discussion around autonomous economies in crypto focuses on the scalability and security of DAOs and their ability to govern substantial digital treasuries. A critical debate concerns establishing clear legal frameworks and accountability mechanisms for self-governing entities. Observing the maturation of decentralized finance (DeFi) protocols and their governance structures will be important for future progress.