A Dencentralized Autonomous Organization (DAO) is a group represented by a set of rules enforced on a blockchain. DAOs eliminate the need of a central administrative entity to make decisions and commit funds to a specific cause. This power is given to the community instead, with the use of governance tokens giving community members voting and governance rights.
In other words, they are organizations that operate without central authorities, but rather governed by rules coded in software on the blockchain, and where administrative decisions are voted upon by a community of stakeholders.
📜Source: A beginner’s guide to DAOs by Linda Xie