A True DAO refers to an ideal model of a Decentralized Autonomous Organization (DAO) that operates entirely autonomously, without central leadership or control, guided purely by code (smart contracts) and governed by its community members. In a True DAO, all decisions, including those about governance, financial management, and project development, are made through collective voting by its token holders or members. This model emphasizes total decentralization, transparency, and democratic participation, aligning with the original ethos of blockchain technology.

The concept of a True DAO represents the vision of an organization where every action and decision is recorded on the blockchain, ensuring transparency and immutability. It's a system where the rules encoded in smart contracts are the only authority, and the community's collective decisions shape the organization's direction. True DAOs aim to eliminate traditional organizational hierarchies and central points of failure, creating a truly decentralized entity driven by consensus among its participants.

While the idea of a True DAO is compelling for its innovation in organizational structure and governance, achieving this level of decentralization presents challenges, including legal recognition, scalability, and efficient decision-making processes. Nonetheless, the pursuit of True DAOs continues to inspire developments in the blockchain space, pushing the boundaries of how organizations can operate and be structured in a digital, decentralized world. The development and creation of True DAOs is what initially inspired Colony and what continues to drive us today.

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