Decentralized Autonomous Organizations (DAOs) operate on blockchain technology and are designed to be fully autonomous and decentralized. DAOs use smart contracts to define their rules and execute agreed-upon decisions without the need for human intervention. Members partake in governance through tokens, and decisions are made based on consensus, enabling an efficient management structure that eliminates the risk of corruption from centralized authority. DAOs can be used for various purposes, including venture funding, charity, and protocol governance.