A decentralized autonomous organization (DAO) is a democratized corporate organization (Web3.0) that’s governed by voting on smart contracts instead of depending on a c-suite for decisions.
A decentralized autonomous organization, or DAO, is a blockchain-based form of organization governed by a native crypto token.
Anyone who purchases and holds these tokens gains the ability to vote on important matters directly related to the DAO through smart contracts. These are self-executing computer programs that carry out a particular function when certain conditions are met.
Explanatory video what a DAO is: https://www.youtube.com/watch?v=KHm0uUPqmVE&t=6s
There's often no hierarchical management. Stakeholders usually make decisions instead of leaders or managers.
The code is open source, meaning anyone can look at it. On the blockchain, anyone can scan through the history to see how decisions were made.
Anyone with internet access could hold DAO tokens or buy them, thus giving them decision-making power in the DAO.
Token holders can change the rules of a DAO by voting on new proposals.