What Is A DAO?

A DAO is a member-owned, digital community that features collective decision making and token incentives to reward behavior. DAOs can and have been set up for a multitude of reasons from organizing community meetups in a particular city to coordinating and collecting political donations or pooling funds for investment or asset acquisition. Regardless of the particular purpose of any DAO, members of a DAO collectively decide on what they’ll do and how to get there.

In contrast to traditionally geographically concentrated groups of individuals, anyone with an internet connection can contribute to a DAO. While tooling, governance and overall DAO management is still very early, the promise of DAOs is enormous.