A DAO (Decentralized Autonomous Organization) is a group of people working together through rules written in code - instead of relying on a boss or central authority. Think of it like an internet-based company, where decisions are made by members who own tokens, and everything is transparent and automatic thanks to blockchain.
In a DAO:
. There's no CEO or office.
. Rules are enforced by smart contracts (programs on blockchain).
. Members vote on how to use money. update the system, or launch new features.
How Voting Works in a DAO
1. Governance Tokens = Power.
Each DAO has a governance token. If you own some, you get the right to vote. More tokens = more influence.
Example: Holding 5, 000 UNI tokens in Uniswap gives you a vote share based on the total supply.
2. Community Proposals.
Members can submit proposals - from small changes to major protocol shifts. Sometimes you need a minimum token balance to propose.
3. Voting Period.
Each proposal has a voting window (typically a few days). Voting platforms like Snapshot or Tally are commonly used.
4. Quorum and Result
For a vote to count, enough people (or tokens) must participate – this is called a quorum. If the majority agrees, the proposal passes.
Why It Matters
DAOS give true ownership to users. They let communities shape the tools they use - from interest rates in lending platforms to how treasury funds are spent. It's democracy, but on-chain
