A Distributed Autonomous Organization (DAO) is an organization that operates through smart contracts on a blockchain. Unlike traditional organizations, DAOs do not rely on a centralized authority or management structure. Instead, they function based on rules defined in code, ensuring transparency and immutability.Members of a DAO typically hold tokens that represent voting power. This enables them to participate in decision-making processes, such as funding projects, modifying rules, or allocating resources. Proposals can be submitted by any member, and decisions are often made based on a majority vote.DAOs aim to democratize decision-making and financial management, making it easier for individuals to collaborate on shared goals without the need for intermediaries. This structure fosters a sense of community and collective ownership, as every member has a stake in the organization’s success. However, DAOs also face challenges, including potential security vulnerabilities in their smart contracts and the need for effective governance to prevent disagreements among members. Overall, they represent a novel approach to organizing talent and resources in a decentralized manner.