thank you for the question @bethalea!

Well, the conversation about the DAO structure actually is pertaining to the Steem Worker Proposal System (Steem DAO) that Bloctrades is working on. There are multiple posts on that subject so be sure to check them, but this was the initial introduction to it (https://steemit.com/blocktrades/@blocktrades/proposing-a-worker-proposal-system-for-steem). Currently there is a poll happening to get public opinion on where the funding for that project would come from.

The Steem DAO (Steem Worker Proposal System) is a completely different project than the community foundation the Steem Alliance group is trying to help organize. The two do compliment each other well though and will work alongside each other in a way.

The Steem DAO is simply a tool (code) that is implemented into the blockchain itself that allows anyone to bring a proposal forward (to the interface) and it is voted based on stake weight. If enough of the stake holders agree to the proposal, funding is granted (probably through a third party that acts as escrow). The process is entirely automated.

The Community Foundation that we are working on building through the Steem Alliance group with the community is a bit different as its the human element and will focus on more visual aspects of the chain.

How will they interact? Well that depends on the approved structure of the foundation.

The future community foundation could be responsible for certain things, like the public repositories of code. The foundation could open these up to the community so they could be more involved in this aspect, and requires a human element. The foundation could also be responsible for the steemit.com website itself as well as marketing, events etc (all which require the human element). The foundation could apply for funding on specific things using the DAO system just like anyone from the community could.. and how else they would interact is up to the public.

The DAO system doesn't really have "responsibilities", its just a tool that allows anyone to apply for funding and then a voting mechanism is used to decide what receives funding.

Essentially, the public now has two ways to apply for funding in the future. Either through The Steem DAO system (automated) or the yet to be determined foundation which the community is building together (human element).

I hope that makes it a bit more clear. I know its confusing as there are still some things that are unknown, but please feel free to ask any other questions and I will do my best to answer them. Thank you!