Definition
A DAO (Decentralized Autonomous Organization) is a blockchain-based organizational structure governed collectively by its members through on-chain or cryptographically verifiable rules. Control is typically encoded in smart contracts, and decision authority is distributed rather than concentrated in a traditional management hierarchy. Members participate in proposing and deciding on organizational actions according to predefined governance mechanisms and membership criteria.
In Simple Terms
A DAO is a group or organization that runs using rules written into code on a blockchain instead of relying on a central leader or company. The people who belong to the DAO collectively decide what it does by following those rules and participating in its decision-making process.
Context and Usage
The term DAO is commonly used in discussions about on-chain governance, community-led projects, and collective management of digital resources. It appears frequently in the context of protocol governance, shared treasuries, and token-holder decision systems. DAOs are referenced when describing how decentralized projects coordinate, formalize membership, and structure authority without relying on traditional corporate or nonprofit legal entities.