A decentralized autonomous organization (DAO) is a blockchain-based organization that is democratically managed by members via open-source code and typically formalized through self-enforcing smart contracts. There are no centralized management structures in DAOs. Network stakeholders vote on all decisions. DAOs frequently use a native utility token to incentivize network participation and assign stakeholders proportional voting power based on the size of their stake. Because DAOs are built on top blockchains, most notably Ethereum, their transactions are carried out transparently on the underlying blockchain.