DAOs aren't things... they are flows.

Rafa: I think the natural inclination that we have is to classify DAOs on the output that they have or the work that's done. But a different lens to look at DAOs is the initial center of gravity.

Based on Vitalik Buterin’s DAOs, DACs, DAs and More: An Incomplete Terminology Guide from 2014, a DAO could be described then as a capitalized organization in which a software protocol informs its operation, placing automation at its center and humans at its edges. For example, a software protocol could specify the conditions upon which an organiza... See more

Nevertheless, DAOs are not without their challenges. The ideal design of DAOs is still being explored, exposing challenging governance questions which may ultimately stymie their growth and development. DAOs are not formally recognized and do not fit neatly into existing forms of business associations, making it difficult for DAOs to interact with ... See more

One common misconception is that DAOs are purely flat hierarchical organizations. This usually isn’t the case. The founders or a few selected individuals are chosen or elected as guardians of the treasury. Over time, DAOs can progressively decentralize into more truly trustless structures.