Sovereign DAO
A Sovereign DAO represents an evolution of the traditional DAO, emphasizing a higher degree of self-governance, independence, and control over its operations and its interactions with its external environment. Unlike a traditional DAO, which operates within the frameworks and limitations set by external systems, a Sovereign DAO possesses its own set of rules, governance structures, consensus mechanisms, and other critical components that best suit its organization's needs, granting it unparalleled autonomy.
This autonomy enables a Sovereign DAO to act as a fully independent entity, govern its own affairs, make its own decisions, manage resources and assets, establish rules and norms for its operations, and interact with external entities in a manner that is fully self-sufficient. Compared to a traditional DAO, which relies solely on smart contracts, a Sovereign DAO usually employs a variety of both on-chain and off-chain mechanisms to achieve a high level of self-governance and independence.
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