DAO – One of the first concept decentralized autonomous organizations built through the Ethereum (now Ethereum Classic) smart contract platform.
DAO is an acronym for Decentralized Autonomous Organization. During conception, people were granted the privilege to send Ether in exchange for tokens to be utilized as ‘voting rights’ on proposed projects for the organization to fund. On June 17, 2016, the organization was hacked and 3.6 million Ether was stolen (~$50MM in 2016). Fortunately the funds were siphoned off into a holding account and were able to be retrieved and returned to the rightful owners. The hack resulted in a hard fork on the Ethereum platform which resulted in Ethereum as we now know it and Ethereum Classic (the platform upon which the DAO was built). To be clear, the error in the code came from the DAO and not from the Ethereum Classic platform.