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Glossary Term

DAO (Decentralized Autonomous Organization)

A DAO is a blockchain-based organization governed by smart contracts and community voting rather than centralized leadership, enabling transparent, automated, and member-driven decision-making. On Solana, DAOs are essential for managing projects, treasuries, and protocols in a fully decentralized way.

Beginner
DeFi
Crypto Terminology

DAO (Decentralized Autonomous Organization): what is it?

Examples

  • 1

    An NFT project on Solana manages its community fund using a DAO, with members voting on marketing or development expenses.

  • 2

    A DeFi protocol on Solana lets governance token holders propose and approve protocol updates or liquidity rewards.

  • 3

    Grants, ecosystem initiatives, or partnership approvals handled through public proposals.

Common Use Cases

Protocol and product governance for Solana DeFi or NFT projects.
On-chain treasury management—allocating resources and issuing rewards.
Community-organized initiatives and pooled investments.
Coordinated decision-making for cross-chain or multi-project collaborations.

Pro Tips

💡

Participate in DAO proposals to actively shape the direction of your favorite Solana projects.

💡

Always review governance token distribution—widespread ownership = robust community governance.

Frequently Asked Questions

Related Terms

DEX
Liquidity Pool
Borrowing
AMM (Automated Market Maker)
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