# GOVERNANCE

Smart contracts are used to create and manage decentralized autonomous organizations (DAOs), which are organizations that are governed by smart contracts.

* **Decentralized autonomous organizations (DAOs):** Governance contracts are designed to support the governance of DAOs. Smart contract-governed organizations known as DAOs are capable of coordinating a wide range of tasks, including investing, project management, and service delivery.
* **Traditional organizations:** Governance contracts can also be used to support the governance of traditional organizations, such as companies, non-profit organizations, and government agencies.


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