Is there a word for an acronym that spells an existing word? [duplicate]
When an acronym spells out a word, it's usually said to be a contrived acronym. From Wikipedia on acronyms.
Acronyms are sometimes contrived, that is, deliberately designed to be especially apt for the thing being named (by having a dual meaning or by borrowing the positive connotations of an existing word).
In the example in your question, DANK is definitely a contrived acronym.