A Decentralized autonomous organization (DAO) is an organization that operates on a blockchain network, governed by rules implemented as smart contracts rather than a regular hierarchy. Members participate in decision-making through blockchain-based voting mechanisms.

Some examples of DAOs are MakerDAO, UniSwap and Mantle.

Roles of DAOs

1. Decentralized Governance: DAOs enable decentralized decision-making processes, where members can participate in voting and governance activities through tokenized voting rights.

2. Transparent Operations: All actions, votes, and finances in a DAO are recorded publicly on the blockchain for full transparency.

3. Funding and Resource Allocation: DAOs can collectively manage and allocate resources, such as funding projects, investing in initiatives, or rewarding contributors, through transparent and community-driven processes.

DAOs enable new models of decentralized, community-driven organizations in the web3 space. As blockchain technology evolves, DAOs are emerging to govern decentralized applications and collaborative projects transparently and autonomously.