Unit 4 · Level 4 · DAOs & governance
Orgs run by tokens
A DAO (decentralized autonomous organization) is a group that coordinates money and rules through smart contracts and token votes instead of managers. Members propose, debate, and vote; passed proposals can move real treasury funds. In November 2021, ConstitutionDAO pooled roughly $47 million from thousands of strangers in under a week to bid on an original copy of the US Constitution. It lost the auction, but it proved the coordination machine works.
Free to play. No ads, no token, no account needed to start.
What you get asked
In one line, what is a DAO?
Rules in code, decisions by vote, money in a shared treasury. Whether the votes really steer it is this unit's big question.
Order the life of a DAO proposal
The magic step is the last one: no CEO signs off. If the vote passes, the contract can move the money itself.
A DAO's shared pot of capital is called its ___.
Major DAO treasuries have held billions in tokens, which is exactly why governance design matters so much.
In most DAOs, how is voting power handed out?
Token-weighted voting is simple and hard to fake with sock-puppet wallets, but it hardwires 'rich decides'. Keep that trade-off in mind for the next lesson.
ConstitutionDAO lost its auction. What did it still prove in 2021?
Roughly $47M, no company, no bank, one week. The refunds were messy and gas fees stung, but the raw coordination power was real. 🐜
The rest of this unit
Token votes, treasury raids, and finding out who really holds the keys.