A DAO is a mechanism of governance enabled by smart contract execution of tokenized commands. Tokens send signals; smart contracts interpret those signals and deliver an outcome. In its most basic form, a DAO is naive: it is not necessarily flat, nor necessarily democratic. In order for a DAO to form, a group of people must agree on the initial architecture and answer: who holds tokens, what rights do tokens create, and what smart contracts exist at the beginning? Answering these questions and committing them to code creates the initial state, the genesis block of the DAO.