DAO is an abbreviation for Decentralized Autonomous Organization. It is an organization managed on blockchain and supported by open-source code and smart contracts(it is like a rule that decides how the company's gonna work, from my understanding, but maybe someone can give a better explanation). ​ It is decentralized because, unlike traditional companies and organizations that are mainly governed by boards, and executives, DAO is governed by every stakeholder. Every stakeholder can have an equal voice when it comes to decision-making in that DAO. To become a stakeholder, you need to buy the governance token. ​ A good example of DAO is, for instance, UNISWAP.