DAO Structure
A DAO, or Decentralized Autonomous Organization, is like a club where members collectively make decisions without a central boss, using technology to keep things fair and transparent. Imagine a group of people pooling money and voting on how to spend it, but instead of meetings or emails, everything happens on a blockchain—a secure, public digital ledger. The rules of the club, like how votes work or how funds are spent, are written in code called smart contracts, which automatically enforce decisions once members agree.
In a DAO, everyone who joins usually buys or earns tokens, like membership cards, that give them voting power. The more tokens you hold, the more influence you have, though some DAOs limit this to keep things balanced. Members propose ideas—like funding a project or changing a rule—and others vote using their tokens. Once a vote passes, the smart contract carries out the decision, like sending money or updating the rules, without anyone needing to step in manually.
Think of it as a high-tech, democratic co-op that runs itself. It’s decentralized because no single person or company controls it; it’s autonomous because the code handles the heavy lifting. This setup is popular in crypto because it cuts out middlemen and builds trust through open, tamper-proof systems. However, it’s not perfect—hacks, bad votes, or disagreements can cause issues, just like in any group.
