Probable transcription factor with a role in the retinal determination (RD) network. Regulates ato expression and is required for normal R8 induction and differentiation. Danr appears to repress Dan expression, but Dan is required for Danr expression anterior to the morphogenetic furrow (MF). Dan and Danr lie downstream of so and require dac function for highest levels of expression. Contributes to differentiation of antenna-specific characteristics; effector gene that acts downstream of homothorax (hth), Distal-less (Dll), cut (ct) and spineless (ss) genes to control differentiation of distal antennal structures. Homomers. Interacts with itself, danr, ey and dac to form a complex (or complexes) containing the RD factors. Coexpressed with danr in the presumptive distal antenna, but not in the leg imaginal disk. Both proteins are also expressed in the brain and the eye region of the eye-antenna disk. First detected in early L3 eye disks in cells surrounding the newly initiated MF. Levels are uniform and high anterior to the furrow, lower levels within and posterior to the furrow. Limited expression is seen in small groups of cells in leg and wing. These appear in the location of prominent sense organ progenitors at relatively late stages of disk development. Flies exhibit partial transformation of antenna toward leg identity and small rough eyes. Ectopic expression causes partial transformation of distal leg structures toward antennal identity and antennal precursors into eye tissue.