What Is a DAC?

A Decentralized Autonomous Cooperative (DAC) is a blockchain-based organization managed collectively by its shareholders or members rather than a centralized authority. Unlike traditional companies where decisions are made by executives or boards, DACs operate through smart contracts and community voting, ensuring that power is distributed among participants.

How Does a DAC Work?

• Shareholder Governance: Each member holds digital shares or tokens that grant them voting rights.

• Smart Contracts: Rules and operations are coded into blockchain-based contracts, which automatically execute decisions.

• Transparency: All activities are recorded on the blockchain, making governance open and verifiable.

Why Are DACs Important?

DACs create fairer and more democratic systems where participants directly influence decision-making. This model reduces corruption risks, lowers administrative costs, and encourages global participation without relying on a single central entity.

Examples and Use Cases:

• Investment Cooperatives where members decide how to allocate pooled funds.

• Community-Owned Platforms where profits and governance are shared.

• Blockchain Projects that distribute decision-making across token holders.

Conclusion

Decentralized Autonomous Cooperatives (DACs) are transforming how organizations operate, shifting from centralized hierarchies to community-driven, transparent, and decentralized models.