What is DAO in crypto?

What Is DAO in Crypto?

A DAO (decentralized autonomous organization) is an organization whose rules are encoded on a blockchain and whose decisions are made by token holders voting. DAOs are used to govern DeFi protocols, treasuries, and projects. Holding governance tokens can give you voting rights and sometimes other benefits. DAOs can have legal and technical risks. In India, gains from buying or selling governance tokens are taxable when you dispose of them.