# DAO

> Decentralised autonomous organisation. A group whose decisions and treasury are managed on a blockchain.

Canonical URL: https://business.fudfomo.co/glossary/dao
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

DAO stands for decentralised autonomous organisation. The idea is a group of people who make decisions and manage funds together, with the rules and the votes recorded on a blockchain.

Members usually hold a governance token, and proposals are voted on in public. DAOs run everything from open-source projects to investment funds to large DeFi protocols.

## Regulatory context

The legal status of DAOs varies widely by country. In some places they are treated as general partnerships by default, which can expose members to liability.

## Related terms

- [Governance Token](https://business.fudfomo.co/glossary/governance-token): A token that gives you the right to vote on changes to a crypto project, usually a DAO.
- [Smart Contract](https://business.fudfomo.co/glossary/smart-contract): A program that runs on a blockchain and does what it says, automatically.
- [Multi-sig](https://business.fudfomo.co/glossary/multi-sig): A wallet that needs more than one signature to move funds. Common for companies and treasuries.

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