A DAO is an organization that uses open-source smart contract codes to automate and facilitate decision-making. Using a DAO may help prevent human error or manipulation since the decision power is no longer in the hands of a few trusted people. Rather, it is automated distributively and written as an immutable code deployed on the blockchain. Using a DAO is not risk-free: Recall the DAO project where coding errors led to $50 million of funds being lost.
DAOs on Tezos
StakerDao: a DAO governed by a community of blockchain and ﬁnance enthusiasts who vote to make decisions and govern to build cross-chain ﬁnancial assets. The process of governance is as follows: New ideas for products and features are proposed on the StakerDAO forum. StakerDAO’s ecosystem comprises Staker Politicians (individuals involved with governance — a requirement is to hold 1% of $STKR, StakerDAO’s token—and qualiﬁed to submit proposals), STKR token holders, and the Staker development team.
Plenty Governance to propose, discuss, vote and upgrade.