dictionary

Decentralised Autonomous Organisation; DAO

An organisation that operates independently or autonomously, without the management structure of a normal organisation, using blockchain technology. The members direct operations directly with smart contracts and tokens in their possession. Decentralised Autonomous Organisations can be considered as the co-operatives of the digital age.

The operational and decision-making rules of a Decentralised Autonomous Organisation are stored as smart contracts, which are based on blockchain technology. The same technology is also used for storing the decisions of the organisation. The organisation operates according to rules that it defines itself. For example, every member of the organisation can propose decisions that are voted on. Decentralised Autonomous Organisations can be used for investing and collecting art, among other things. In Finland, the need for legislative changes is currently being assessed, for example whether Decentralised Autonomous Organisations should be classified as legal persons.