When we hear the term Decentralized Autonomous Organization (DAO), the word autonomous stands out the most. It gives the impression of an organization that can run entirely by itself, without any human involvement. But is that really possible in practice?
DAOs are designed to operate on smart contracts—self-executing code that runs on blockchain networks like Ethereum. These contracts automatically enforce rules and distribute funds based on pre-set conditions, removing the need for intermediaries. In theory, a DAO could run purely on code. For example, a DAO treasury could automatically release funds to certain addresses if certain on-chain conditions are met.
However, the reality is more nuanced. While code can govern execution, humans are still necessary for decision-making, governance, and adapting to real-world changes. Smart contracts can’t anticipate every future scenario, especially in dynamic markets or complex ecosystems. That’s why DAO members—often token holders—vote on proposals, guide the strategy, and update the rules when needed.
That said, the level of human involvement can vary. Some DAOs operate with minimal interference, where governance is rare, and most operations are automated. Others are highly active, requiring constant participation from the community.
So, can DAOs operate without humans? Not entirely. Technology provides automation, but human judgment ensures adaptability, innovation, and resilience. DAOs thrive at the intersection of code and community, where automation handles execution, and people provide vision.