DAOs Are Like School Clubs… But With Billions at Stake

Decentralized Autonomous Organizations (DAOs) are blockchain-based entities governed by smart contracts instead of executives or boards. Members use governance tokens to vote on proposals, shaping everything from finances to operations. DAOs take many forms—protocol, grant, social, investment, and more—but their pseudonymous structure raises unresolved legal, tax, and regulatory questions. Despite the uncertainty, DAOs now manage over $33B in assets, making them impossible for policymakers to ignore.