What is decentralized autonomous governance?

Every centralized organization is controlled by an individual or a small group. They serve as a trusted middleman and ideally would act in the name of the shared interest. Unfortunately these individuals or small groups sometimes put their own interests above the shared interest of the organisation they are supposed to serve. In this case they are a 'single point of failure' which causes the whole organisation to malfunction.

Decentralized governance aims to fix the 'single point of failure' issue. How? It is basically decentralizing governance into the hands of all the organization members instead of an individual or small group. It is using transparent management of finance and efficient voting mechanisms to do so:

DAOA traditional organization

Voting required by members for any changes to be implemented.

Depending on structure, changes can be demanded from a sole party, or voting may be offered.

Votes tallied, and outcome implemented automatically without trusted intermediary.

If voting allowed, votes are tallied internally, and outcome of voting must be handled manually.

All activity is transparent and fully public.

Activity is typically private, and limited to the public.


What are DAOs?

Last updated