Decentralized autonomous organizations (DAOs) seem to gain traction both in the crypto space and the blockchain world. What’s more, DAOs are self-managed entities that operate using smart contracts in a blockchain. While DAOs may potentially revolutionize the way companies operate, they also pose a risk if there is a lack of proper oversight.
The decentralized autonomous organization (DAO) is a new form of legal framework. In the absence of a central governing body, each DAO member usually has a common goal and tries to act in the entity’s best interests. DAOs are used to make choices in a bottoms-up management style and have gained popularity among bitcoin enthusiasts and blockchain technology.