A DAO (Decentralized Autonomous Organization) is basically an organization run by rules encoded on a blockchain, instead of traditional managers or executives. It’s:

Decentralized → No central authority; decisions come from token holders or members.

Autonomous → The rules and operations (like voting, funding, or governance) are enforced automatically via smart contracts.

Organization → It can manage funds, make proposals, and coordinate communities—kind of like a digital co-op.

Key Features:

1. Governance via tokens – Members usually hold governance tokens that let them vote on proposals (e.g., funding a project, changing rules).

2. Smart contracts – These are self-executing codes on a blockchain that carry out decisions transparently and without middlemen.

3. Transparency – Everything (votes, treasury, proposals) is on-chain, so it’s open and auditable.

4. Community-driven – The community decides the future instead of a CEO or board.

Real-world Examples:

MakerDAO (manages the DAI stablecoin).

Uniswap DAO (governs Uniswap protocol upgrades).

Aave DAO (governs lending protocol decisions).

Why it matters:

DAOs flip the script on traditional orgs by giving communities actual control over resources and direction—like a company run by its shareholders in real-time, but without the bureaucracy.

👉 In short: a DAO is a blockchain-native, community-governed organization where the code + members replace the CEO.