A big part of DeFi governance, Decentralized Autonomous Organizations, or DAOs, are internet-native organizations collectively owned and organized by their members. DAOs give users a chance to start social organizations without knowing each other, establish their own rules and make their own decisions autonomously on the blockchain. As explained more in-depth in the article later, there are many uses of DAOs, including investments with attractive returns.
Token holders are given voting rights proportional to their holdings and are able to own equity in the DAO to help shape the DAO’s future.Once there’s enough funding for a DAO to kick-off, all of its decisions will be made by token holders through a consensus vote. As the DAO’s stakeholders, community members will then work towards the most beneficial outcome for the entire network.
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