DAOs and Governance

Crypto isn’t just about trading or making money — it’s also about being a part of the projects you believe in. That’s where DAOs and Governance come in.

Smart contracts play an important role in a DAO and it is a self-executing program on the blockchain that automatically carries out actions (like transactions) when predefined conditions are met — no middleman needed.

What is a DAO?

A DAO (Decentralized Autonomous Organization) is a community-run organization with no central leader. Decisions are generally made collectively by the people who hold the project’s assets. Everything is managed on the blockchain, making it transparent and tamper-proof.

Think of it like this:

Traditional companies = CEOs and managers call the shots.

DAOs = Everyone with a token gets a vote

Owning DAO tokens means you’re not just an investor — you’re part of the decision-making team.

Why do DAOs exist?

In traditional companies, decisions come from the top — CEOs, managers, or boards of directors. But crypto is built on decentralization, meaning no single person should control a project. DAOs make that possible by giving power to the community.

Imagine a group of people pooling money to invest in NFTs or build a DeFi platform — but instead of one leader, everyone gets a say , That’s a DAO.

How Does Governance Work?

Governance lets the community decide on important changes to the project — like fees, new features, or partnerships. It works like this:

Proposal: Someone submits an idea for the community to vote on (eg: “Should we lower the transaction fees?” or “Should we sponsor XYZ Sports team?”)

Voting: Token holders vote – more tokens usually means more voting power.

Execution: If the proposal passes, the smart contract automatically carries it out.

This ensures the project evolves based on what the community wants — not a handful of people at the top.