Decentralized Autonomous Organization (DAO)

A corporate organization that operates on hard-coded rules and uses the decentralization decision-making model from top to bottom.

A decentralized autonomous organization (DAO) is any corporate organization that follows the decentralization principle of traditional blockchains, with hard-coded rules that underlie the organization’s operations. Regarding leadership and management, DAOs do not adhere to any particular hierarchical system and instead use smart contracts, rewarding accomplishments based on contribution.

DAOs essentially function as a meritocracy, with the organization better described as a community of active and equally motivated members than a corporate institution solely driven by a desire for profit.