Understanding DAOs: The Future of Decentralized Autonomous Organizations | by PRASIT | The Capital | Jan, 2025

Decentralized Autonomous Organizations (DAOs) are revolutionising the way we think about governance and organizational structures.

At their core, DAOs are organizations that operate without a central authority, using smart contracts to manage their operations.

In this blog, we will delve into what a DAO is, how it works, its benefits and downsides, and explore some real-life examples to illustrate their potential.

Table of Contents

DAO stands for Decentralized Autonomous Organization.

This means that a DAO is essentially an organization run by code, which is agreed upon by its members.

Instead of relying on a traditional management structure, DAOs use smart contracts to facilitate decision-making and operations.

These smart contracts automate processes, enabling the organization to function…