# DAO

## What is a decentralized autonomous organization, How does a StreamDAO work?

A decentralized autonomous organization (DAO) is an entity with no central leadership. Decisions get made from the bottom up, governed by a community organized around a specific set of rules enforced on a blockchain.

Stream Protocol is an internet-native organization collectively owned and managed by community members. We have built-in treasuries that are only accessible with the approval of Stream community members and token holders. Decisions are made via proposals the group votes on during a specified period.

## What is StreamDAO?

Stream Protocol is a decentralized organization (DAO) that utilizes a governance token to allow its community members to participate in decision-making and benefit from the organization's various services and revenue streams. This type of DAO model is becoming increasingly popular in the blockchain space, as it enables a community-driven approach to governance and incentivizes participation in the Stream organization's growth.

By holding Stream's governance token, community members can propose and vote on changes to the StreamPay platforms, as well as benefits from the organization's various revenue streams, such as payment application fees, transfer costs, and investments. We may also receive dividends or see an increase in the value of Stream tokens if the organization's services and products perform as well.

Additionally, Stream Protocol's treasury or liquidity pools also provide funds for blockchain engineers, software developers, partnerships, affiliate programs, charities, and businesses owned by Stream's parent company, Stream Foundation Ltd. which further benefits the community and incentivizes participation in the Stream ecosystem.

Overall, the Stream Protocol´s DAO model appears to be an innovative and community-driven approach to organization and governance, which could have broad web3 applications in the blockchain technology and decentralized space.

## Characteristics Of Decentralized Autonomous Organization

* Decentralization
* Transparency
* Democracy
* Automation

### Hierarchical management&#x20;

A Stream Protocol´s StreamDAO works without hierarchical management and can have a large number of purposes. Liquidity pools funds to pay for blockchain engineers, software developers, subscriptions, charitable organizations where community members approve donations, and venture capital firms owned by a group are all possible with Stream organizations.

Those who owned Stream "Governance" tokens could profit from the organization’s investments by either reaping dividends or benefitting from the price appreciation of the Stream tokens.

[\
](https://res.cloudinary.com/practicaldev/image/fetch/s--057_HJ5V--/c_limit%2Cf_auto%2Cfl_progressive%2Cq_auto%2Cw_880/https://dev-to-uploads.s3.amazonaws.com/i/xqmgv9ne71k8bjq8bowk.PNG)
