Terra Wallet DAO Ushering in a New Era of Decentralized Finance Governance
Decentralized Autonomous Organizations (DAO): The Rise of a New Governance Model
Governance refers to the actions involved in managing collective decision-making, aiming to optimize resources and operations. With the rapid growth of DeFi (Decentralized Finance) and NFT (Non-Fungible Token) communities, the issue of how to govern decentralized protocols has become increasingly important. However, traditional governance models often require significant coordination costs, as network participants need to vote on every decision.
In new decentralized networks, these coordination costs can be significantly reduced. Smart contracts enable participants to govern collaboratively. These new networks are known as DAOs, or Decentralized Autonomous Organizations. In a DAO, people come together wit...