These are organizations who’s decisions are voted for by shareholders, later enforced by Smart Contracts.
- Each shareholder owns Tokens, representative of their voting power Often used as Venture Capitalist funds
Benefits
- DAO’s can use Smart Contracts to automate organizational tasks like onboarding, payrolls, asset management, etc
- DAO’s cannot be shut down by government agencies, unless the agency controls enough tokens to shut them down
Downsides
- Entirely open source
- No business secrets
- Attackers have a white-box to attack