Decentralized Autonomous Cooperative (DAC)
A Decentralized Autonomous Cooperative (DAC) is a blockchain-based organization run collectively by its members, without central leadership. Decisions, operations, and profit-sharing are managed through smart contracts and community voting, making it transparent, democratic, and self-sustaining.
What is a Decentralized Autonomous Cooperative?
Traditional cooperatives are organizations owned and operated by their members, whether farmers pooling resources, workers running a business, or communities managing shared services. The cooperative model values equality, fairness, and shared responsibility.
A DAC takes this familiar structure and places it on the blockchain. Instead of relying on legal paperwork, trusted managers, or centralized boards, it runs on code. Membership, governance, and financial flows are all handled by smart contracts that execute automatically once certain conditions are met.
How a DAC Operates in Practice
When you join a DAC, you typically receive governance tokens that represent both membership and voting rights. These tokens let you propose initiatives, vote on strategies, and influence how resources are used.
For example, a group of developers could form a DAC to manage an open-source project. Members might vote on what features to build next, how to allocate funds from the project’s treasury, or whether to form partnerships. Everything is recorded transparently on the blockchain, making decisions traceable and tamper-proof.
Unlike traditional organizations, there’s no CEO making top-down decisions. Power is distributed across the community, and the rules are encoded into the network itself.
Why DACs Are Different From DAOs
DACs are often compared to Decentralized Autonomous Organizations (DAOs), but the cooperative element sets them apart. While DAOs can have broad purposes, investment funds, NFT collectives, gaming guilds, DACs specifically embody the cooperative principle: collective ownership, democratic decision-making, and fair distribution of benefits.
Think of DAOs as a broad category, and DACs as a specialized type focused on collaboration and shared value.
FAQ
What’s the main benefit of a DAC?
It combines the fairness of traditional cooperatives with the automation and transparency of blockchain technology.
How is a DAC funded?
Members may pool resources, or the DAC may generate revenue through services, products, or investments. Smart contracts then distribute rewards automatically.
Can anyone join a DAC?
It depends on the cooperative’s design. Some are open to all, while others require specific contributions, expertise, or investment.
Are DACs legally recognized?
In most countries, not yet. Some regions are experimenting with legal frameworks, but DACs mainly operate in the blockchain space rather than under traditional law.
Disclaimer: Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more at: https://go.payb.is/FCA-Info
