Notitia
Code- and vote-governed organisations.
A DAO (decentralised autonomous organisation) is run by rules written into smart contracts and by votes of governance-token holders, rather than by a hierarchy.
They manage treasuries, DeFi protocols or shared projects. Challenges: low turnout, vote concentration and legal uncertainty.
A 100-million-token DAO votes on a spend. Quorum is 4% of supply; 6.5 million tokens vote, 3.6 million in favour.
With 6.5% turnout, 3.6% of the supply decides for everyone. A pro looks at vote concentration and delegation before calling governance “community-run”.
Test your understanding with a quick interactive quiz.