2025-08-30
In traditional organizational management, problems such as low decision-making efficiency and centralized power are common. With the booming development of decentralized finance (DeFi), Decentralized Autonomous Organization (DAO) has emerged as an innovative organizational form. Based on blockchain technology and smart contracts as rules, it achieves joint governance and decision-making among community members, reshaping the organizational operation mode. So, what exactly is DAO in DeFi? How does it operate? And in which areas does it play a role?
DAO is a decentralized organizational form built on blockchain technology, with the core features of "autonomy" and "decentralization". Unlike traditional companies or institutions, DAO does not have a centralized management organization and hierarchical system. Instead, it pre-sets the rules and operational logic of the organization through smart contracts, and all decisions are jointly voted on by members holding governance tokens. These rules and decisions are recorded on the blockchain, which is open, transparent, and tamper-proof. For example, in DeFi lending DAO, token holders can vote on major issues such as loan interest rate adjustments and risk control parameter modifications. Smart contracts will automatically execute approved proposals to ensure that the organization's operation is not subject to human intervention and truly achieve community governance.
The operation of DAO relies on the close cooperation of token governance system and smart contracts. Firstly, DAO grants holders the right to participate in decision-making through publish governance tokens, and the number of tokens usually determines the voting weight. Members can submit proposals for Organization Development direction, fund allocation, protocol upgrades, and other matters. Other members express support or opposition through voting. When the preset voting threshold and approval ratio are reached, the proposal is passed. Secondly, as the execution engine of DAO, smart contracts are responsible for verifying the legitimacy of proposals, counting voting results, and automatically executing decisions. For example, when DAO decides to invest in a DeFi project, smart contracts will automatically transfer funds to the designated address. To ensure the scientificity of decision-making, some DAOs have set up mechanisms such as proposal discussion period and second voting, and introduced multi-signature wallets to manage funds and enhance security. HashKey Exchange also pays attention to the innovative model of DAO organizations when exploring the development of DeFi ecology, providing users with channels and related information to participate in high-quality DAO projects.
DAO has a wide range of application scenarios in the DeFi field. In the investment field, investment DAO gathers member funds and decides investment targets through voting, such as cryptocurrency and DeFi protocols, to achieve collective investment profits. In terms of protocol governance, DeFi projects allow community members to participate in protocol parameter adjustment, function upgrade and other decisions through DAO, enhancing the degree of decentralization and community cohesion of the project. In addition, DAO is also used to create decentralized exchanges, lending platforms, etc., which are jointly managed by the community for platform operation, rule-making and other affairs. HashKey Exchange Following the development trend of DAO, studying its application potential in different scenarios, and providing support for customer engagement in the construction of DeFi ecosystem. However, when customer engagement DAO, attention should be paid to governance risks, smart contract vulnerabilities and other issues. When enjoying the benefits brought by decentralized autonomy, project risks should be evaluated rationally.
What is HashKey Exchange?
HashKey Exchange is one of the first regulated cryptocurrency exchanges in Hong Kong to obtain a license from the Securities and Futures Commission (SFC). It supports fiat currency deposits and trading in Hong Kong dollars (HKD) and US dollars (USD), offering users spot trading services for mainstream digital assets including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). The platform also provides OTC (over-the-counter) services to meet the needs of large-value asset transactions and fiat currency conversion, ensuring more flexible and private trading. To cater to the asset allocation needs of different investors, HashKey has launched the HashKey Earn channel, offering users fixed-term and demand financial products to achieve stable appreciation of crypto assets. The platform holds ISO 27001 and 27701 security certifications, employs a 98% cold wallet storage mechanism, and incorporates security measures such as two-factor authentication to provide users with a stable and reliable trading environment.
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