DAO stands for "decentralized autonomous organization," which is a type of organization that operates on a decentralized blockchain network. A DAO is governed by a set of rules encoded in smart contracts, which are executed automatically and transparently without the need for a central authority or intermediary.

In a DAO, members hold tokens that represent their ownership and control over the organization. Members can propose and vote on changes to the organization's rules and operations, including the allocation of resources and the distribution of rewards.

DAOs can be used for a wide range of purposes, including investment funds, crowdfunding platforms, and community-driven projects. They offer several advantages over traditional centralized organizations, including increased transparency, efficiency, and democratic decision-making.

One of the most famous examples of a DAO is The DAO, which was launched on the Ethereum blockchain in 2016 as a decentralized investment fund. However, The DAO was ultimately hacked, resulting in the loss of millions of dollars worth of cryptocurrency. This incident led to increased scrutiny and regulation of DAOs, but the concept of decentralized autonomous organizations continues to be explored and developed by the blockchain and cryptocurrency community.