Decentralized autonomous organizations, or DAOs, can be seen as a kind of dapp. They aim to use an intricate arrangement of smart contracts to achieve the functions of a traditional organization without the need for corporate executives and hierarchies. They determine policy entirely through a weighted voting system where members who lock away more tokens possess greater voting power. The idea behind this concept is that those who have committed more funds to a DAO will be more likely to participate in it honestly, for the good of the organization.
What Is a Dapp? Decentralized Apps Explained
