Decentralized autonomous organizations ("DAOs") appear to be the next great development coming out of the ever-expanding field of blockchain technology. Blockchain technology has evolved since its inception in 2010 as a trustless exchange of value, to smart contracts, non-fungible tokens ("NFTs") and now smart governance platforms. DAOs present a fundamentally decentralized approach to governance, allowing for new types of organizations and approaches to business. This article explores the concept of DAOs, how they came to be, the parameters, examples and legal issues surrounding DAOs. A DAO is an organizational structure with an objective that is maintained on a blockchain or distributed ledger. The objective can be any wide-ranging common goal shared by the members of a DAO, including donating to charities, collecting art, operating as an investment fund, etc. Unlike most traditional organizational structures that require some sort of authoritative governance, there is no hierarchy among members of a DAO. Control of a DAO is spread among its members. Any one member can submit a proposal for the DAO to perform a certain action, wherein the proposal is voted on by the members of the DAO.
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