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Oracle DAO

1 min read
Pronunciation
[awr-uh-kl dee-ay-oh]
Analogy
Like a cooperative where members collectively decide admission criteria, fees, and operational rules for a service.
Definition
A decentralized autonomous organization governing an oracle network, responsible for setting parameters, managing node membership, and handling upgrades via token‑weighted voting.
Key Points Intro
Oracle DAOs decentralize governance of oracle networks through on‑chain voting.
Key Points

Membership: Token holders elect or vet oracle nodes.

Parameter votes: Adjust fees, collateral requirements, and update intervals.

Upgrade control: Approve new adapter code or consensus rules.

Treasury: Manages funds for node incentives and development.

Example
The Delphi Oracle DAO votes to increase node staking requirements and reduce update intervals from 1 hour to 10 minutes.
Technical Deep Dive
DAO contract implements ERC‑20 voting token, `propose()`, `vote()`, `execute()`. Proposals update oracle config stored in on‑chain registry via DAO’s multisig execution.
Security Warning
Governance attacks can alter oracle behavior; require quorum and time‑locks.
Caveat
Voter apathy can lead to centralization; incentivize participation.
Related Terms
Multisig Governance
Oracle Collateralization
Oracle Incentive Model

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