A DAO is short for a ‘Decentralized Autonomous Organization’.
But what exactly does that mean?
Well, a DAO is an organization that lives on the internet and isn't governed by a single leadership entity.
Instead, power is shared among all the members who can be based anywhere in the world.
Every member shares a common goal, and rules are enforced by smart contracts on the blockchain. These rules are decided by proposals and voted on by members of the DAO.
A real-life example would be a grassroots campaign where decisions aren’t made by those at the top, but rather by those organizing on the ground.