A decentralized autonomous organization is a collective of individuals or organizations governing resources, registries, or rules. These types of organizations avoid problems typically faced by traditional hierarchies through increased transparency and automated execution. DAO decision-making can be leveraged for something as simple as transferring funds to an individual account or organization, to the execution of code and updating a DAO with an entirely new set of rules. Decisions that are made by a DAO are transparent, with activity and voting being reflected on-chain to avoid any pitfalls of closed-door decision-making. Upgrades and proposals in DAOs are typically automatically executed once a proposal reaches a required quorum, reflecting both a DAOs ability to be agile and efficient.