What is Decentralized Governance ?
DAOs are governed via a Decentralized Governance model by which the power of a CEO and it’s board move to reside within a community.
Decentralized Governance occurs on the blockchain and via smart contracts, with actors submitting proposals that can be voted on and if successful, changes are made and implemented.
Organizations that are governed by decentralized models are still being debated by academics as it has not yet flourished.
Examples of Decentralized Governance
- A charity that accepts membership and donations from anyone in the world and the group can decide how they want to spend donations.
- A freelancer network that who pool their funds for office spaces and software subscriptions.
- A venture fund that pools investment capital and votes on ventures to back. Repaid money could later be redistributed amongst DAO-members.
Examples of Existing DAOs