Plain English
A DAO is a Decentralized Autonomous Organization — a group coordinated by smart contracts and governed by token holders rather than executives. Decisions are made by on-chain voting.
How it actually works
A DAO typically has a governance token. Holders vote on proposals — protocol upgrades, treasury spending, parameter changes. The smart contract executes whatever passes. Famous examples include MakerDAO (which governs DAI), Uniswap DAO, and Aave DAO.
What it means for you
DAOs matter to members mainly because the DeFi protocols they use (Aave, Compound, Maker) are governed this way. Understanding how governance works affects how you assess a protocol’s long-term direction and risk.
The curriculum touches on DAO governance as part of our protocol-due-diligence framework — including how to read voting outcomes and assess governance attack surface.
Educational content only. Not investment, tax, or legal advice.