WHAT IS IT?
A DAO is an organization that is focused on a specific mission, and its members work in coordination according to a shared set of rules encoded on a blockchain. The major purpose of the decentralized autonomous organization is to help eradicate a significant problem in many conventional organizations — the principal-agent problem.
WHY IMPORTANT
The DAO is one major invention that is challenging current systems of governance. Utilizing NFTs, DAOs are changing our perspective of how organizations and systems should be run, and they put further credence to the idea that the optimal form of governance does not have to do with hierarchical structures.
