DAO (Decentralized Autonomous Organization)
In DeFi (Decentralized Finance)
Plain English
A organization run by rules written in code instead of managed by CEOs or boards. Members vote on decisions using tokens, and the votes automatically trigger actions. It’s like a company owned and controlled by its community rather than executives.
Technical
A governance structure coordinated through smart contracts and token-based voting rather than traditional hierarchical management. DAO members hold governance tokens proportional to voting power, proposing and voting on protocol changes, treasury allocation, and operational decisions. Proposals are executed on-chain after reaching quorum. Solana DAOs use programs like SPL Governance to implement on-chain voting and execution.