What is a DAO (Decentralized Autonomous Organization)?

A Decentralized Autonomous Organization (DAO) is an organization that operates through a set of smart contracts on a blockchain, with decisions made via a decentralized governance system rather than by a central authority. Members of a DAO typically hold governance tokens that give them voting power on proposals related to the organization’s future, such as project funding, resource allocation, or changes to the protocol. DAOs aim to operate in a transparent, democratic, and autonomous manner, with decisions made by community consensus. They have been used for various purposes, including decentralized investment funds, charity projects, and open-source software development.