A decentralized autonomous organization (DAO) is an entity with no central leadership that is organized around a specific set of rules. These rules are enforced on a blockchain using smart contracts, which are essentially chunks of code that automatically execute whenever a set of criteria are met. These smart contracts establish the DAO’s rules.
DAOs are internet-native, they have built-in treasuries that are only accessible with the approval of their members. Decisions are made via proposals the group votes on during a specified period. Those with a stake in a DAO then get voting rights and may influence how the organization operates by deciding on or creating new governance proposals.
This model prevents DAOs from being spammed with proposals: A proposal will only pass once the majority of stakeholders approve it. How that majority is determined varies from DAO to DAO.