Sep 15, 2021
DAOs are increasingly governing larger and larger DeFi protocols and their respective treasuries. On this episode of DeFi Decoded, Andrew and Alex dig into the rapidly emerging DAO boom and discuss how they've helped accelerate DeFi ecosystem growth.
While Decentralized Finance has the potential to revolutionize the financial system, Decentralized Autonomous Organizations (DAOs) threaten to disrupt the very way humans organize, socialize, and coordinate. DAOs are on-chain entities that facilitate the governance and economic coordination of decentralized protocols. The typical DeFi protocol often collects a fee, which is then diverted to an on-chain treasury. Rather than having the core founders control this treasury, DAOs enable DeFi protocols to put tokens in control of them. Token holders vote on how to disburse funds, allocate budgets, and how to hire/fire contributors.