In essence, a Decentralized Autonomous Organization (DAO) is when an organization's governance is not centralized but decentralized and executed automatically. This means the rules of governing the organization is programmed into a computer or in the case of DAO in a crypto context, the blockchain and decisions automatically executed based on the rules. Depending on how many tokens a holder has when there is a vote for a proposal affecting the organization, the holder's vote counts in relation to his or her holdings. Based on the outcome of the vote the decision will be automatically executed based on the execution rules coded in the contract. Since holders are decentralized, and the rules affecting the organization are executed automatically, it is called DAO.