A Decentralized Autonomous Organization (DAO) is a digital organization that operates through smart contracts on a blockchain, allowing for automated decision-making without central authority. Members of a DAO typically hold tokens that grant them voting rights, enabling them to propose and vote on changes or initiatives within the organization. DAOs aim to promote transparency and inclusivity, as all transactions and decisions are recorded on the blockchain, making them accessible to all members. This structure can be applied to various sectors, including finance, art, and community projects, fostering collaboration and innovation among participants.