This glossary provides definitions of key terms related to Decentralized Autonomous Organizations (DAOs).

A

  • Access Control:
    • The mechanisms used to determine who has permission to perform specific actions within a DAO, such as voting or accessing treasury funds.
  • Address (Blockchain):
    • A unique identifier on a blockchain network, used to send and receive digital assets.

B

  • Blockchain:
    • A distributed and immutable ledger that records transactions and data across a network of computers.

C

  • Community Governance:
    • A decision-making process where the community of DAO members collectively determines the organization’s direction.
  • Consensus Mechanism:
    • The method by which a blockchain network validates transactions and reaches agreement on the current state of the ledger.

D

  • DAO (Decentralized Autonomous Organization):
    • An organization run by rules encoded as smart contracts on a blockchain, eliminating the need for traditional hierarchical management.
  • Decentralized Governance:
    • A system of governance where decision-making power is distributed among a network of participants, rather than concentrated in a central authority.
  • Delegation:
    • The process by which a DAO member assigns their voting power to another member or entity. This allows for more efficient governance and representation.
  • DeFi (Decentralized Finance):
    • Financial applications and services built on blockchain technology.

G

  • Gas Fees:
    • Transaction fees paid to miners or validators on a blockchain network, typically used to compensate for the computational effort required to process transactions.
  • Governance:
    • The rules and processes that determine how a DAO makes decisions and operates.

I

  • Interoperability:
    • The ability of different blockchain networks and DAOs to communicate and interact with each other.

O

  • On-Chain Governance:
    • Governance processes that are conducted directly on a blockchain, using smart contracts to automate voting and execution.
  • Off-Chain Governance:
    • Governance processes that occur outside of the blockchain, such as discussions on forums or social media, before on-chain votes.

P

  • Proposal:
    • A formal suggestion or plan submitted to a DAO for consideration by its members.

R

  • Reputation System:
    • A mechanism for tracking and evaluating the contributions and behavior of DAO members, often used to incentivize participation and good governance.

S

  • Smart Contract:
    • A self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
  • Snapshot:
    • A method of recording token balances at a particular block height, used for voting, airdrops, and other functions.
  • SubDAO:
    • A smaller, more focused DAO that operates within a larger DAO, often with specific objectives or responsibilities.

T

  • Tokenomics:
    • The study of the economics of a cryptocurrency or token, including its supply, distribution, and utility.
  • Treasury:
    • The pool of digital assets held by a DAO, used to fund its operations and initiatives.

V

  • Voting:
    • The process by which DAO members express their preferences on proposals and decisions.

W

  • Web3:
    • The next generation of the internet, characterized by decentralization, blockchain technology, and user ownership.