What is a DAO

What is a DAO?

A DAO, or Decentralized Autonomous Organization, is a blockchain-based group that governs itself through smart contracts instead of centralized management. In a DAO, decisions are made collectively by members who hold voting power, and all actions—such as funding proposals or treasury movements—are executed transparently on-chain. This model eliminates the need for intermediaries and replaces traditional hierarchies with community-led governance.

At its core, a DAO is a shared wallet with a rulebook written in code. Members contribute capital, vote on how it’s used, and share responsibility for outcomes. Every transaction, proposal, and vote is verifiable and auditable, ensuring that the organization’s operations are transparent and tamper-proof. DAOs can serve many purposes: they can act as investment clubs, charity funds, project collectives, or decentralized venture firms.

How Rayze uses DAOs

Rayze uses DAOs as the foundation for how communities invest and govern capital together. When users form a DAO on Rayze, they are creating an on-chain organization complete with its own treasury, governance system, and proposal engine. Each DAO operates independently but follows the same secure framework built on Aragon OSx for governance and Safe for treasury management.

Within a Rayze DAO, members can:

• Pool Capital into a shared treasury using stable assets like tUSDC.

• Submit Proposals to invest in startups, fund initiatives, or distribute rewards.

• Vote and Govern collectively, with every decision recorded on-chain.

• Execute Transactions directly through the DAO’s smart contracts, ensuring secure, transparent fund movement.

DAOs on Rayze are designed to feel familiar yet powerful—combining the structure of traditional investment funds with the flexibility of decentralized technology. Each DAO can represent a group of friends investing in a startup, a professional syndicate managing deal flow, or a global community backing a shared mission.

In time, DAOs on Rayze will evolve beyond governance tools into programmable funds.