Governance DAO

Definition ∞ A Governance DAO, or Decentralized Autonomous Organization focused on governance, is a community-led entity that manages a blockchain protocol or digital asset project through collective decision-making. Token holders vote on proposals related to protocol upgrades, treasury allocation, and operational parameters. These organizations aim to decentralize control and promote transparent, community-driven development.
Context ∞ Governance DAOs are a prominent topic in crypto news, representing a significant shift towards decentralized control in the digital asset sector. Discussions often center on the effectiveness of various voting mechanisms, voter participation rates, and the challenges of achieving true decentralization. The ongoing evolution of Governance DAOs influences the future direction and adaptability of numerous blockchain networks and their associated digital assets.