DAO (decentralized autonomous organization)
A community whose rules and shared treasury live in smart contracts. There is no boss: token holders decide by voting. A proposal passes once it gets enough votes.
Example
A protocol wants to change its fee. A token holder posts a proposal and the others vote. If enough votes come in, the change is applied.
What not to do
Do not assume a vote is fair by default: whoever holds more tokens holds more votes. And do not put money into a DAO before you know who is able to change the contract code.
WEEX