A DAO, or Decentralized Autonomous Organization, is an organization governed by smart contracts on a blockchain. It operates without a central authority, allowing members to make decisions collectively and transparently.Members typically hold tokens that enable them to vote on various proposals, such as how funds are spent or what the organization’s goals should be. This democratic process ensures that all members have a say and can influence the direction of the organization.DAOs often manage funds in a treasury, allowing members to collaborate on projects, investments, or initiatives. This model fosters trust and reduces the need for intermediaries, as all actions and decisions are recorded on the blockchain.The flexibility and transparency of DAOs have led to their use in various sectors, including venture funding, charity, and community projects. However, like any governance model, DAOs can face challenges, such as coordination among members and potential security vulnerabilities in smart contracts.