DAO stands for decentralized autonomous organization. A DAO is any organization that makes its decisions in a democratic fashion on a decentralized network. A good example of a functioning DAO exists on the Dash network. Every month the DAO on the Dash network decides how to spend a certain amount of funds by voting on various projects. The projects that the DAO approves get funded. In this way a DAO can have employees like a traditional organization but there is no central point of authority or a “boss”, the network votes on every decision.