What is a Decentralized Autonomous Organization (DAO)?

A Decentralized Autonomous Organization (DAO) is a community-led group that operates without a central authority, and yields its governance to every member, rather than a select few. DAOs are run on blockchains with smart contracts, which uphold the rules and standard operating procedures of the group. The decision-making processes are based on decentralized voting systems that allow members to vote on proposals that determine how the organization is managed and how its funds are allocated.