A DAO or decentralized autonomous organization is a software program running on blockchain technology that uses the power of smart contracts to enforce rules in a trustless manner. Instead of operating like a traditional organization with a hierarchical structure, a DAO is community driven and depends on automated code to set rules its participants enforce.
Also known as a decentralized autonomous corporation, a DAO offers a completely member-owned community of like-minded individuals who come together for a specific purpose without the control of a central authority. DAOs can serve various purposes, from powering DeFi protocols to raising investments for upcoming projects, from offering a decentralized platform for engagement to enabling a way to pool together funds for gaining ownership of a high-value asset.