The DAOs are typically involved in the set of people interacting with each other as per the open-source protocol’s self-enforcing. The keeping of the network sites the performance of the other network tasks, which are rewarded with native network tokens.
The blockchains and the smart contracts reduce the costs of transaction of the management at a higher level of transparency, which aligns with all the stakeholders’ interests by a rule consensus rules tied to a native token.
Individual behaviour is incentivized with the token to contribute to a common goal collectively. The members of the DAO aren’t bound to the together by the legal entity, nor do they get into the formal legal contracts.