DAO Governance Model

Definition ∞ A DAO Governance Model describes the framework and rules by which a Decentralized Autonomous Organization makes collective decisions. This model typically involves token holders voting on proposals related to protocol upgrades, treasury management, or strategic direction. It aims to distribute control among participants, removing the need for a centralized authority. The specific mechanisms dictate how proposals are submitted, discussed, and ultimately approved or rejected.
Context ∞ The state of DAO Governance Models involves ongoing experimentation with various voting mechanisms and incentive structures to promote active and informed participation. A key debate centers on addressing voter apathy and preventing whale concentration, where a few large token holders wield disproportionate influence. Critical future developments include the implementation of liquid democracy, quadratic voting, and reputation-based systems to create more equitable, resilient, and efficient decentralized decision-making processes.