docs_tfgrid4/docs/decentralization/dao.md

---
title: 'ThreeFold DAO'
sidebar_position: 4
---

A **DAO**, or **Decentralized Autonomous Organization**, is an organizational structure that operates through smart contracts on a blockchain, with decision-making processes carried out in a decentralized and autonomous manner. 

DAOs aim to create transparency, eliminate centralized authority, and allow members to participate directly in decision-making.

### Key Characteristics of a DAO:

1. **Decentralization**
   - Decisions are made collectively by the members.

2. **Autonomy**
   - Once deployed, a DAO operates according to its pre-defined smart contracts, which enforce rules and execute decisions automatically without manual intervention.

3. **Governance via Token Ownership**
   - Members often participate in governance by holding tokens, which can be used to vote on proposals or influence decisions.

4. **Transparency**
   - All transactions and governance decisions are recorded on the blockchain, ensuring accountability and transparency.

5. **Programmable Rules**
   - DAOs use smart contracts to define rules, manage assets, and execute actions based on collective decisions.


### ThreeFold DAO

The ThreeFold Cooperative promotes and manages the DAO. INCA token holders vote using the DAO on grid enhancement proposals (GEP) and utility enhancement proposals.

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TODO: add links to GEP and UEP
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... 2024-12-11 04:46:33 +00:00			`---`
			`title: 'ThreeFold DAO'`
			`sidebar_position: 4`
			`---`

			`A DAO, or Decentralized Autonomous Organization, is an organizational structure that operates through smart contracts on a blockchain, with decision-making processes carried out in a decentralized and autonomous manner.`

			`DAOs aim to create transparency, eliminate centralized authority, and allow members to participate directly in decision-making.`

			`### Key Characteristics of a DAO:`

update decentralization section 2024-12-12 01:24:37 +00:00			`1. Decentralization`
... 2024-12-11 04:46:33 +00:00			`- Decisions are made collectively by the members.`

update decentralization section 2024-12-12 01:24:37 +00:00			`2. Autonomy`
... 2024-12-11 04:46:33 +00:00			`- Once deployed, a DAO operates according to its pre-defined smart contracts, which enforce rules and execute decisions automatically without manual intervention.`

update decentralization section 2024-12-12 01:24:37 +00:00			`3. Governance via Token Ownership`
... 2024-12-11 04:46:33 +00:00			`- Members often participate in governance by holding tokens, which can be used to vote on proposals or influence decisions.`

update decentralization section 2024-12-12 01:24:37 +00:00			`4. Transparency`
... 2024-12-11 04:46:33 +00:00			`- All transactions and governance decisions are recorded on the blockchain, ensuring accountability and transparency.`

update decentralization section 2024-12-12 01:24:37 +00:00			`5. Programmable Rules`
... 2024-12-11 04:46:33 +00:00			`- DAOs use smart contracts to define rules, manage assets, and execute actions based on collective decisions.`


			`### ThreeFold DAO`

update decentralization section 2024-12-12 01:24:37 +00:00			`The ThreeFold Cooperative promotes and manages the DAO. INCA token holders vote using the DAO on grid enhancement proposals (GEP) and utility enhancement proposals.`

			`<!--`
			`TODO: add links to GEP and UEP`
			`--->`