No, it's a token on the Ethereum blockchain. No more DAO tokens will be created by POS or POW. The Dao tokens entitle you to vote on proposals. If a proposal succeeds, the contractor then gets some of the ETH held in the Smart Contract to fund their project. The contractor then returns a share of any profits back to the DAO in the form of ETH. Then the DAO holders are given reward tokens(which are different than DAO tokens.) I believe these reward tokens can be redeemed for ETH, but I am not sure.
Quite frankly, I don't think any of this will come to pass. I think this was just a grand scheme to pump up the price of ETH. (Which happened when people where buying the DAO tokens during the ICO creation period.) Now, the ETH is all tied up, so the pumpers have less of a supply of ETH that could flood the markets. Slowly and surely, some of the ETH in the DAO will become liquid again once people succeed in splitting and getting their ETH back. Unfortunately, this process takes at least 48 days or so, and someone could launch a stalker attack on you while you try to do this, and indefinitely tie up your ETH.