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Web3 Fundamentals and NEAR

DAO

DAO

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DAO stands for “decentralized autonomous organization”

In contrast to any organization, DAO has the freedom to govern itself or control its own affairs. As you all know, in a central organization, there are CEOs, CTOs, board of directors, etc. They all play a crucial role in decision making meetings. CEOs even have some power not to approve some of the decisions.

However, DAOs are much more decentralized and autonomous. There are no CEOs, CTOs or board of directors here but only members. Members are the ones that hold tokens. Each member can propose something and it will be voted by the members. If it passes, the code behind the DAO will be run and the proposal will be executed immediately. Once it is approved, no one can disapprove it unless another proposal of disapproving the current one is voted and passed.

In short, everything is based on a voting process.

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For further information: DAO

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