DAO - A new organizational model in the blockchain era

2025-12-21 11:13:03

What is the real definition of DAO?

DAO (Decentralized Autonomous Organization) is not a traditional company with a hierarchical management structure. Instead, it is a system that operates on an open-source platform, coordinated by community members rather than a centralized management board. The rules and operational mechanisms of the DAO are written in code and executed through smart contracts, eliminating the need for a single centralized authority.

History and development of DAO

Although the idea of decentralized organizations is not new, the modern concept of DAO was shaped when “The DAO” - an organization launched on the Ethereum blockchain in 2016 - came into existence. Since then, DAO has become an important concept in the Web3 and crypto ecosystem.

Smart contracts: the foundation for DAO to exist

The key factor that makes DAO different from traditional decentralized organizations is the use of smart contracts. These contracts automate many processes and functions, reducing reliance on human intervention, thereby lowering operating costs and minimizing risks associated with errors or personnel manipulation.

What applications does DAO bring?

The use cases of DAO are very diverse:

Automated fundraising: DAO can organize digital token issuance campaigns such as ICO( and asset tokenization completely automatically.
Decentralized voting system: Community members can vote on proposals and important decisions without the need for approval from a central authority.
Decentralized governance: Every member has a voice in shaping the direction of the organization.

The potential to transform the industry

Just like how Bitcoin creates a peer-to-peer digital economy system that eliminates the need for banks and third-party intermediaries, DAO has the potential to revolutionize many sectors through a decentralized governance model supported by smart contracts. This structure allows a diverse range of business activities to be carried out in a completely decentralized manner, enhancing efficiency and transparency.

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