DAO.. simply explained

Definition

A DAO (Decentralised Autonomous Organization) is a community-led entity that focusses on community programs and efforts that are and will continue to build towards our vision of complete decentralisation. besides decentralisation, DAO can also help to achieve financial self-sovereignty, security, and prosperity and push the protocol forwards toward community-led growth, development, and self-sustainability, through education, media, and culture.

Purpose

Since DAO's are community led and decentralised in nature, the core purpose if to make the state of affairs autonomous and transparent. It done in various way such as :

1. Smart contracts lay the foundational rules.

2. Protocols execute the decisions made by the community.

3. Create new proposals.

4. Voting process.

5. Provide transparency and audit-ability.

Good to know: DAO's are a form of decentralised (digital) cooperatives. Both DAO and cooperatives focus on collective ownership, governance and prioritises collective control and the creation of shared products.