DAOs essentially distribute power among their members, thereby decentralizing decision-making. Traditional organizations often have a hierarchical structure, with decision-making powers concentrated in a few individuals. However, DAOs, underpinned by blockchain technology, allow for decision-making processes to be spread out among many members. In a DAO, governance decisions are made through consensus, and every member who holds tokens has a say in these decisions. This promotes transparency and participation, moving away from centralized control.