The World Economic Forum’s report on Decentralized Autonomous Organizations (DAOs) examines their potential to transform governance, finance, and collaboration while highlighting critical risks. DAOs enable transparent, programmable decision-making through blockchain, offering agility and inclusivity. Yet, challenges remain around legal recognition, regulatory compliance, security vulnerabilities, and equitable participation. The report calls for clearer governance models, stronger risk management, and regulatory engagement to ensure DAOs mature responsibly. By embedding trust, accountability, and inclusivity, DAOs can evolve beyond hype to become sustainable engines of innovation and digital collaboration.

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