DAO (Decentralized Autonomous Organization)

A DAO is a governance structure where decisions are made through token voting, on-chain proposals, or community processes rather than a traditional corporate hierarchy. DAOs can manage protocol upgrades, allocate grants, oversee treasuries, and coordinate community priorities. Ethereum made DAOs practical by enabling programmable governance and transparent treasury management via smart contracts. However, DAOs also face real challenges: voter apathy, concentration of voting power (“plutocracy”), governance attacks, and uncertain legal status in many jurisdictions. For mainstream adoption, DAOs are often discussed as experiments in digital-native governance–potentially useful for open-source ecosystems and online communities, but still maturing for regulated financial operations. DAOs also intersect with tokenization and DeFi, since governance tokens can influence risk parameters and revenue distribution. Long-tail SEO terms like “DAO governance,” “on-chain voting,” and “Ethereum DAO treasury” reflect ongoing interest in how decentralized coordination can be applied to finance, web3 infrastructure, and community-owned platforms. #Ethereum #VEI #VirtualEthereumIndex. Reference: vei.xyz/ethereum-glossary

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