The modern concept of "Democracy" asks the following question: if the governance is held by "experts", then they are going to take the calls regarding their personal interest regardless of the general one. Is it possible to keep the best of the elite’s expertise without drifting away from the initial concept? That is what the Daocracy is about, a Distributed Autonomous Organization without any centralized authority.
When the democracy reach its limitations, we need to forecast new way of governance. The Daocracy is an alternative one that can be used now thanks to the major advances in cryptography and IT protocols. As Smart Contracts permit automation of actions, the Daocracy can split "Power" as we know it. Redefining the legislative side held by bearer who fund the DAO and take all the risk.
This old concept prove that a large group of people are collectively smarter than even individual experts when it comes to problem solving, decision making, innovating and predicting. As the decision is the result of all decisions taken by citizens, it is a truly democratic one. The Daocracy is the merge of democratic software known as Distributed Autonomous Organization and predictive market.