DAO (Decentralized Autonomous Organization)

An organization governed by token-holder voting on smart-contract-executed proposals.

A DAO is an organization whose decisions are made by token-holder voting rather than executives, and whose decisions execute automatically through smart contracts. The model spans from "DAO in name only" projects where founders control 90% of voting power to genuinely distributed governance where no single entity can pass proposals.

DAO governance is usually less democratic in practice than it appears. Voter turnout is typically below 10% of circulating supply, meaning small coordinated groups can pass proposals. Delegation, used to address turnout, concentrates power back in a handful of professional delegates.