A DAO is a Decentralized Autonomous Organization with governance rules that are automated and transparently recorded on a blockchain.

Its operation is based on smart contracts, which are autonomous programs that perform preset conditions automatically. It can't be stopped or closed once it's been deployed, and it can't be manipulated in any way, including changing information or numbers. It can be purchased for the services it provides, such as governance tokens for voting rights. Furthermore, the public has access to every information, like the source code.

It is a worldwide organization accessible to everybody, independent of any authority, based on computer code, and in which no one can cheat.