A decentralized autonomous organization (DAO) is a blockchain organization that does not have any centralized power. DAO organizations are based on secure automated rules (smart contracts) and are run by its users.
In 2016, a DAO, called “The DAO,” was created on the Ethereum blockchain. The DAO was developed to enable investors to transfer currency anonymously. In June 2016, hackers were able to access approximately $50 million in Ether. This incident eventually led to the discontinuation of The DAO.