NFTs, DAOs & Web3

What is the difference between a DAO and a traditional company?

A DAO is a decentralized autonomous organization governed by member voting and smart contracts, whereas a traditional company is governed by a hierarchy of directors, executives, and managers under formal legal incorporation. In a DAO, rules and treasury spending execute automatically on a blockchain and decisions are made collectively by token holders; a company relies on people, contracts, and centralized authority. For example, a DAO votes on-chain to release funds, while a company's board signs off through internal process. DAOs offer transparency and open membership, but often lack the clear legal status and accountability a registered company carries.