---
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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