A decentralized autonomous organization (DAO) is an organization represented by rules encoded as a computer program that is transparent, controlled by shareholders, and not influenced by a central government. A DAO’s financial transaction record and program rules are maintained on a blockchain.
What is the legal status of a Decentralized Autonomous Organization? The precise legal status of this type of business organization is unclear.
How does it work? Here the members are represented by the address (in Ethereum, It’s Ethereum address). These addresses can be owned by a human, a robot, an IoT device, or even another DAO. Moreover, each member is given a token which represents the shares of the DAO.