Too Long; Didn't Read
A decentralized autonomous organization (DAO) is a decentralized organization that operates autonomously using rules encoded onto the blockchain. There is no central management, but in practice, there is usually an individual or a group who takes some responsibility for assembling the DAO and putting in place the initial infrastructure for it to operate. The first version of a DAO in action ended up as a cautionary tale. The DAO launched in May 2016 and successfully raised over 12.5 million ETH, worth around $120 million. However, a month later, a hacker found a vulnerability in the underlying smart contact code and started draining funds.
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