# Decentralized Autonomous Organization (DAO) A DAO is a Decentralized Autonomous Organization that is an entity in a digital system run by smart contracts. This digital system is the block chain. Smart contracts are rules/encoded computer programs that are transparent, managed by the organization members and not influenced by a central management team. There are also digital tools and protocols that you should use to handle specific transactions or other elements of the contract. Smart contracts run on the blockchain and the open nature of such organizations that transact transactions within it are visible to all its members, as well as immutable. To be fully decentralized, the DAO must have no affiliation with any Nation-State. DAO Membership A DAO is a fully automated entity run by members who meet the DAO requirements for entry. Once these conditions for entry are met, interested parties become members of the DAO. Conditions for becoming a member entails buying its cryptocurrency. Having the asset then generally gives members the power to vote on proposals and updates, proportional to the amount they hold. This is also a part of DOA governance. However, before joining a DAO it is advisable to join the community and interact with other members. This gives a better feel of what the DAO is about and helps in making the decision for or against joining the DAO.