Decentralized Autonomous Organization (DAO)

A Decentralized Autonomous Organization is an organizational structure run by smart contracts on a blockchain, where rules are encoded and enforced automatically.
Members of a DAO govern it through proposals and voting, typically using tokens that represent voting power or ownership. This structure aims to eliminate central authorities or intermediaries, promoting transparency and direct participation from stakeholders. Funds and decisions in a DAO are managed collectively, based on the consensus of its members, often for purposes like investment, governance, or community projects.
Essentially, DAOs operate on principles of collective decision-making, where the code and community consensus dictate actions, rather than a traditional hierarchical management.