Decentralized Autonomous Organizations (DAOs) are automated voting systems, which (sometimes) happen to have large sums of cryptocurrency assets at their disposal for their members to vote on.

And by "vote on", I mean that the members (the people who have voting tokens for the DAO) get to decide where that money goes through a voting procedure.

Unless the DAO contains bugs. In which case, a malicious hacker gets to decide where that money goes. Which is usually into the hacker's pockets.

More on that in this episode.

PS: A test engineer mantra is that all code contains bugs, and we just haven't found them yet.

PPS: Limited liability companies have bugs too. They've been fixing them since 1811.