Decentralized Autonomous Organization (DAO)

By CoinGecko | Updated on Mar 03, 2020

Open source and decentralized systems that do not require centralized operators or controllers. A decentralized autonomous organization can vote on various aspects of a system without the need of central controller. Members of a decentralized autonomous organization are typically made up of token holders whose voting strength are proportional to their holdings relative to the whole ecosystem.

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Related Terms

Non-Fungible Tokens (NFT)

They are collectible elements within the Ethereum blockchain under ERC-721, where each token refers to a single element with a certain value

Option

It is a financial instruments that refers to a contract offers the buyer the right to buy or sell an underlying assets at a specified price and time.

Soft fork

A backward-compatible update to a decentralized blockchain protocol.

Delegated Proof-of-Stake (dPOS)

A consensus mechanism where selected members of a network are voted as delegates to validate transactions and produce blocks on a blockchain.

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