Category: Decentralized finance

In 2016, the launch of The DAO, a decentralized venture capital fund, pioneered a new organizational model, fundamentally altering how we think about collective governance. A decentralized autonomous organization (DAO) contains a unique combination of smart contracts, a community of token holders, and a collectively managed treasury, all operating transparently on a blockchain.

Over $100 million was raised by the first DAO in 2016, showcasing the disruptive potential of this new organizational model. DAOs are now reshaping how we organize and operate, so understanding what are the benefits of using DAO is crucial for innovators and community builders.

In 2016, the initial DAOs were launched, creating a new type of organization that operates without central leadership. A DAO, or Decentralized Autonomous Organization, contains a core technical framework built on blockchain, consisting of smart contracts, governance mechanisms, a treasury, and an engaged community.