Decentralized autonomous organization - Definition from the Hotspot Shield Encyclopedia
A DAO or DAC (Decentralized autonomous organization or corporation) is a business that is run solely using automated processes on a computing system often called smart contracts.
Financial transactions and records of a DAO are kept on the Blockchain. The concept and description of a DAO remains unclear as there is no legal status that it can fit under, and the management and operators of the business often remain unknown. DAO's face many problems in their operation. Due to the lack of legal status, this can cause issues for a DAOS operation, and once a DAO organization is launched, the code is difficult to alter and any bugs that are found may be hard to solve.