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A decentralized autonomous organization (DAO) is a set of computer-defined rules and smart contracts based on blockchain.
With the widespread use of blockchain technology, a new type of business or organization has gained popularity. A decentralized autonomous organization, or DAO, is a business that is managed decentralized through smart contracts built on the blockchain. The basic goal of DAOs is to enable a sizable contributor community to take part in its governance and long-term growth.
DAOs function as a result of a variety of smart contracts working together, enabling members to participate equally in internal decision-making. How the company will use financing and resources is one of the decisions made by the community of stakeholders. A certain proportion of the community must agree in order for the organization's plans and policies to be accepted.
Extra reading:
https://coinmarketcap.com/alexandria/glossary/decentralized-autonomous-organizations-dao
https://cointelegraph.com/daos-for-beginners/what-is-a-dao
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