A decentralized autonomous organization, or DAO simply means that an organization has no central authority nor is it run from a centralized location (e.g. a single server). A DAO is an organization run by the people, for the people.
Why a DAO?
As a project led by the people — aka DAO — transparency and community control over the project are its core strengths. All decisions are made using off-chain voting using snapshots, followed by an execution on smart contracts, directly on the blockchain. The project can, at no point, be controlled or steered by a single individual or entity. Any of the protocol’s rules can be changed at any time through a community vote.
This also implies that all suggestions/proposals can turn into reality.
Example: Do you have an idea on how to improve the protocol, how to promote it or how to receive funding/grants etc? Put in your proposal for the community to see. Then the community will vote on your proposal. The community (delegates) have full autonomy for their decision making and if your proposal received a majority YES vote, it will go through and be executed. As simple and straightforward as that!