Decentralized Autonomous Organization
- Formal
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A Decentralized Autonomous Organization (DAO) is an organization that runs without human intervention. Governance is strictly restricted to pre-coded rules.
- Practical
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This type of organization is run through rules encoded called smart contracts. A DAO’s transaction record and program rules are maintained on a Blockchain, which presents clear advantages in terms of transparency and security. The legal framework is yet to be unclear however.