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What are DAOs?
Article

What are DAOs?

Here’s what to know about the ‘next big trend’ in crypto

Taylor Locke
CNBC, 2021
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8

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  • Overview
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Recommendation

Cryptocurrencies, nonfungible tokens and now, decentralized autonomous organizations (DAOs): Some experts believe this recent innovation may prove to be yet another transformational force in finance and commerce. DAOs offer a distributed set-up – in contrast to the hierarchical framework of a traditional legal corporate entity – in which individuals and groups can engage in shared decision making. Journalist Taylor Locke explores the emerging phenomenon and explains the specifics of operating models, utilization and future trends. Investors interested in learning more about DAOs will find this a helpful introduction.

Take-Aways

  • A decentralized autonomous organization (DAO) is a new structure based on blockchain.
  • Members join a DAO and pool funds with the intent to invest or pursue a specific agenda.
  • Because DAOs are still in their infancy, investors should assess their risks carefully.

About the Author

Taylor Locke is a financial reporter for CNBC.

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