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What is a DAO? (Decentralized Autonomous Organization) ï¿½ The Beginner's Guide ï¿½ How do DAOs Work? ï¿½ Start buying cryptocurrencies. A DAO is a decentralized autonomous organization, a type of bottom-up entity structure with no central authority. Members of a DAO own tokens of the DAO, and. A decentralized autonomous organization (DAO), sometimes called a decentralized autonomous corporation (DAC), is an organization managed in whole or in part.