Most DAOs I've seen are simply discord chats where membership into the chat is based on ownership of some digital asset.

The DAO usually has a treasury of assets and members vote on proposals to make changes to the treasury.

The resulting action from a vote is governed by a smart contract. This removes the "principal agent problem" of relying on a CEO to carry out the wishes of "members".

A smart contract can only interact with assets that exist on the same chain as the contract itself. I.e. ETH DAO contracts can trade ERC20 tokens and NFTs on ETH only. If you want to trade Polygon assets, the DAO contract must be on Polygon, etc.

Bitcoin smart contracts only deal with BTC. There's no other assets to trade on L1. Sidechains and L2 networks that support tokens expose their own smart contracting language that can support DAOs

But ask yourself why DAOs matter. Is the Principal Agent Problem really worth paying gas fees every time you vote on a proposal? Seems corporations have worked fine for centuries without DAOs. What is the fundamental innovation here?