Decentralized autonomous organisations (DAOs) are internet-native organisations on blockchain networks that are democratically governed by members based on a set of specific rules that automatically execute themselves without the intervention of intermediaries or central authority.

Unlike traditional organisations, which are hierarchical and typically centralised with a CEO and major shareholders, DAOs distribute authority democratically among members.

Members pool financial resources in a smart contract and receive tokens representing ownership and voting rights in the DAO in exchange. The greater the number of tokens obtained, the greater the voting rights obtained.