Decentralized Autonomous Organization (DAO).

A Decentralized Autonomous Organization, or DAO, is an organization that functions based on rules established on a blockchain and implemented through smart contracts. DAOs enable large groups of autonomous individuals to make decisions and work together toward a common goal, without the need for a formal legal structure or centralized control.

DAOs are typically set up to manage the treasury of a public blockchain network, which can be used to support projects and initiatives that increase adoption of the network.

One of the most common forms of a DAO is a token-based membership model. In token-based memberships, users need only own the DAO's board token to vote on important decisions, such as which projects to fund or changes in board rules.