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<sup>[src](https://blockchainhub.net/wp-content/uploads/2016/08/mother.png)</sup>
#### Introduction
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When it comes to cryptocurrency there’s quite the infrastructure built around it, one of which has been picking up steam is *[DAO(Decentralized Autonomous Organisation](https://leofinance.io/@leoglossary/leoglossary-decentralized-autonomous-organization-dao)*.
A [DAO]( https://leofinance.io/@leoglossary/leoglossary-decentralized-autonomous-organization-dao) serves as a control body, reshaping the governance structure of projects in the crypto space. This opposes the triangular system of decision-making that we see in the traditional system. [Crypto](https://leofinance.io/@leoglossary/cryptocurrency) by design tackles many of the flaws of this pre-established system of financial and now governance, beginning with the free market to [decentralization](https://leofinance.io/@leoglossary/leoglossary-decentralization). All of these come together to define the power of crypto and blockchain-powered organizations.
Many flaws that accompany most projects begin with the governance structure, bad governance means bad management, and over the years we've seen how bad it has always been to place power in the hands of one. A [DAO](https://leofinance.io/@leoglossary/leoglossary-decentralized-autonomous-organization-dao) opposes the one-man governance system, giving decision-making rights to a vast number of people.
We see the similarities play out in node operators, only that a node operator secures a network by ensuring its functionality through producing blocks and validating transactions. A [DAO](https://leofinance.io/@leoglossary/leoglossary-decentralized-autonomous-organization-dao) on the other hand tackles the decision rights of the network, thereby controlling what gets implemented and what doesn't. The similarities in both lie in their vast span, which is where [decentralization](https://leofinance.io/@leoglossary/leoglossary-decentralization) plays in.
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<sup>[src](http://csipr.nliu.ac.in/wp-content/uploads/2020/09/decentralised-autonomous-organisation-media-1024x576.jpg)</sup>
#### Finance Management Structure
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Developing a project and deploying a token onto a [smart contract](https://leofinance.io/@leoglossary/leoglossary-smart-contract) and calling it decentralized is one thing, through its distribution curve, this can be viewed as a valid point of assessment, however, this doesn't ensure the safety of the system in the short or long term. A [DAO](https://leofinance.io/@leoglossary/leoglossary-decentralized-autonomous-organization-dao) ensures that changes are not made to the original design without the knowledge of the community involved.
Value is derived from the community, as such, product changes or project funding should be powered by the same community. We live in an economy controlled by a small circle of individuals, who, in most cases, suffer no damage from the decision they make. A [DAO](https://leofinance.io/@leoglossary/leoglossary-decentralized-autonomous-organization-dao) changes this by decentralizing the process of decision-making, giving governance a new form of operation. When it comes to crypto, it controls the creation and distribution of value.
With the help of the [Blockchain](https://leofinance.io/@leoglossary/blockchain), the process of this governance structure remains transparent, giving it a more trustworthy framework to lean on.
When a [smart contract](https://leofinance.io/@leoglossary/leoglossary-smart-contract) is built to take input from not one but the larger percentage party, a better financial structure is built to manage the flow of value across the network. We've seen this play out a number of times with several projects falling back to the [DAO](https://leofinance.io/@leoglossary/leoglossary-decentralized-autonomous-organization-dao) to decide on the creation and destruction of tokens for many reasons including controlling the network's debt ratio and managing currency inflation.
Project funding has also embraced this model of governance to push developments with value intents to the network or individuals involved, or not-for-profit projects like the [hive borehole project](https://leofinance.io/@taskmaster4450/hive-borehole-changing-lives)
The ability to directly influence the flow or value distribution within a network changes a whole lot for project scaling. For this reason, lots of what is being built out as crypto-powered will rely on [DAO](https://leofinance.io/@leoglossary/leoglossary-decentralized-autonomous-organization-dao) to function properly within the space.
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Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@malopie/dao-reshaping-finance-and-governance-structures)
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