# What a DAO is A DAO is an autonomous organization governed by hardcoded rules that lives on the internet, * with access to a shared pool of assets and funds that is managed remotely * with the control being distributed among it's members * coordinated by achieving collective consensus. ## What a DAO is not A DAO * is not an organisation with the control being held or governed by a single authority. * is not run by a set of rules passed by some board of directors. * cannot live offchain. * is not managed with hardcopied agreements or official papers. * won't have it's assets & funds directly or solely managed by a single entity. * cannot pass on rules or decisions without acheiving greater consensus. * will not impose hierarchical authority over it's members. ## How a DAO is implemented A DAO (Decentralized Autonomous Organization) is mainly built with the help of web3 technology, ethereum. And a DAO is characterized mainly by this 3 dominant, distinct and unique characteristics, 1. Autonomous 2. Distributed 3. Decentralized A DAO is made autonomous by the use of smart contracts that is precoded with a set of rules for running a DAO without any manual human intervention. A DAO is made distributed by providing uncensored access to it's resources, assets and funds for all of it's token holders. A DAO is made decentralized by eliminating sole control over it's actions and achieving consensus through the distribution of voting rights to all of it's members.