A DAO, or Decentralized Autonomous Organization, is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members, and not influenced by a central government.
DAOs are a form of smart contract on a blockchain, where collective decision-making processes are written into code and executed automatically. This allows for decentralized governance and decision-making in a secure and transparent manner.
DAOs can be used to manage collective investments, operate decentralized applications (DApps), or govern any decentralized entity. Members of a DAO can vote on decisions such as resource allocation, investment strategies, or changes to the protocol, with the blockchain providing a secure and transparent record of all decisions and transactions.