What is a DAO?

The Standard Protocol is a DAO, but what is it?

A “DAO” is a decentralized autonomous organization. The main idea is to enable the company to operate at full capacity without hierarchical governance. All the decisions about changes to the application or protocol are carried out upon reaching a consensus. Everyone who has a “share” in the DAO (usually these are holders of the project’s native token) can submit a proposition regarding its future — for the stakeholders to vote a proposition in or out. To pass a proposition, it must be supported by the majority of voters. The percentage that is considered the majority can be found in the founding code of the DAO.

This means that The Standard Protocol users will participate in the project’s development and get to make important decisions! In one of our upcoming posts, we will touch upon the question of what decentralization and DeFi mean for the world.