DAO

Definition ∞ DAO stands for Decentralized Autonomous Organization. It is an entity governed by code and community consensus, operating without central management. Decisions are typically made through token-based voting mechanisms executed on a blockchain.
Context ∞ DAOs are a significant topic in crypto news, representing a novel form of organizational structure. Discussions often revolve around their governance models, the challenges of achieving effective decentralized decision-making, their legal status, and their application in managing decentralized finance protocols, investment funds, and digital communities. The evolution of DAO structures is closely monitored for its potential to reshape corporate governance and collective action.