@jinishbunyan
A Decentralized Autonomous Organization (DAO) is an organization governed by smart contracts on a blockchain, where decision-making power is distributed among its participants rather than a centralized authority. DAOs operate through token-based voting, where token holders can propose and vote on decisions like protocol changes, funding allocations, or changes in governance rules. The rules are encoded in smart contracts, which are transparent and automatically execute actions once a proposal is approved. DAOs enable decentralized decision-making, offering more democratic and transparent governance structures. However, challenges like governance attacks, voting power concentration, and legal complexities still remain, making them a relatively new and evolving concept in the blockchain ecosystem.
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