Decentralized Autonomous Organizations (DAOs) represent a revolutionary organizational model that operates on blockchain technology through smart contracts, eliminating traditional hierarchical management structures. This article provides a comprehensive exploration of DAOs, beginning with core concepts where rules are programmatically enforced rather than relying on human intermediaries. The mechanics section explains how governance tokens enable collective decision-making through automated smart contract execution. Key characteristics include decentralization, transparency, automation, and global accessibility that democratize organizational participation. DAOs apply across decentralized finance, investment pooling, community coordination, and protocol governance, managing billions in assets collectively. While offering advantages like reduced bureaucracy, trust-building transparency, and cost efficiency, DAOs face challenges including legal uncertainty, smart contract vulnerabilities, and scalability issue