DAO

How it is used

Many DeFi protocols are run by a DAO: members create proposals, vote and control a shared treasury, often held in a multisig. Common phrases: DAO proposal, DAO vote, DAO treasury, governance token. Usually said as one word, 'dow', though some people spell it out. Its legal status differs from country to country.

Example sentences

1. The protocol's DAO voted to spend two million dollars from the treasury on security audits.

2. Anyone holding at least 1,000 governance tokens can submit a proposal to the DAO.

Common collocations

• DAO proposal
• DAO vote
• DAO treasury
• governance token
• join a DAO

Related terms

• smart contractA program stored on a blockchain that runs automatically when certain conditions are met. Once deployed it usually cannot be changed, and it can hold and move funds without a middleman.
• protocolThe set of rules and code that defines how a blockchain or crypto service works. In DeFi, the word often means the whole system of smart contracts behind an app.
• multisigShort for multi-signature: a wallet setup that needs approval from several private keys, such as 2 of 3 or 3 of 5, before a transaction can be sent.
• tokenA digital asset created on top of an existing blockchain, usually by a smart contract, rather than on its own network. Tokens can stand for money, voting rights, access to a service or a unique item.
• hard forkA change to a blockchain's rules that is not compatible with older software, so every node must upgrade. If part of the community refuses, the chain can split into two separate networks.

More terms: Smart Contracts & dApps

• dApp
• Solidity
• EVM
• oracle
• audit
• deploy