DAOs (Decentralized Autonomous Organizations) are increasingly impactful in international development projects, potentially surpassing traditional institutions. Their blockchain-based structure ensures transparency, reduces corruption, and enables direct fund allocation, bypassing intermediaries. DAOs empower communities by allowing stakeholders to vote on project priorities, fostering inclusivity and local ownership. For instance, initiatives like Gitcoin fund open-source projects globally through decentralized governance. Unlike traditional institutions, DAOs operate with lower overhead costs and faster decision-making, leveraging smart contracts for efficiency. However, challenges like regulatory uncertainty, technological barriers, and scalability concerns remain. While traditional institutions offer established networks and expertise, DAOs provide agility and trustless systems, making them compelling alternatives for driving equitable, community-driven development in a digital era.