The full name of DAO is Decentralized Autonomous Organization. DAO belongs to the native community on the blockchain. They are decentralized in that they are jointly owned and managed by their members.

The DAO's structure is flat and has no hierarchy. The DAO does not have a central authority calling the shots. Every member has an equal say.

DAO is also autonomous because the governance rules of DAO are written into smart contracts on the blockchain for automatic operation. Any operation not covered by the smart contract code cannot be performed. This differentiates DAOs from traditional business cooperatives or partnerships.

Smart contract code is the backbone of DAO. They are completely transparent and can be verified by anyone. Furthermore, the code cannot be changed unless pre-set conditions are met, such as approval by a majority of DAO members. Therefore, people do not need to trust anyone when participating in DAO, they only need to trust the code of DAO.

Famous DAOs include MakerDAO, BanklessDAO, Friends With Benefits, PleasrDAO, etc.

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