- Community-run organizations via shareholder voting. - Cryptocurrency tokens hold voting power. - Larger shareholders can write proposals to be voted on. - Your tokens can be delegated to whoever you'd like to represent your vote. - Token holders decide the future of the app/game/protocol at hand. ![[Pasted image 20211010105813.png]] --- Idea is to move control to users. Organizational changes made would require a majority vote. Any token holder can sit at the table and have a say. No. of tokens = No. of votes. Rich person takeover is self-harming as users can sell off their tokens on the open market. Votes can be delegated to a member in the community that is trusted. So money does not become the deciding factor of say. DeFi apps that want to take-on a DAO format, such as [[Compound]], will issue their own **governance crypto coin**. Compound's token for example, (COMP) gives anyone who holds it, the ability to vote on any Compound governance proposal. Every governance token is a cryptocurrency which can be bought and sold freely on the open market # Examples of DAOs: - [Compound Finance](https://compound.finance/) - [AAVE](https://aave.com/) - [Yearn Finance](https://yearn.finance/) - [Decentraland](https://decentraland.org/) - [Decentral Games](https://decentral.games/) #deeptech