As its name suggests, a Decentralized Autonomous Organization (DAO) has the ability to function autonomously and without a central authority.
DAOs base their existence on distributed accounting technologies; for example, blockchain. From this, processes within the organization are defined in a decentralized manner by smart contracts.
In many cases, through the possession of an NFT or token, users or participants of a certain project can become part of the DAO, whereby they can participate in decision-making and vote on certain proposals.
In this way, the interests of the organization and its members are aligned without the need for a hierarchical structure.
Currently, there are a large number of projects that have a DAO, which does not belong to a specific jurisdiction. Its decentralized nature and autonomous functioning make it possible for it to exist across borders.