Article ; Online: Governance impacts of blockchain-based decentralized autonomous organizations
Policy Design and Practice, Vol 6, Iss 4, Pp 465-
an empirical analysis
2023 Volume 487
Abstract: AbstractThe rapid rise in blockchain-based Decentralized Autonomous Organizations (DAOs) offers policy-makers and decision-makers new opportunities to automatically execute decisions and processes that help enhance transparency, accountability, ... ...
Abstract | AbstractThe rapid rise in blockchain-based Decentralized Autonomous Organizations (DAOs) offers policy-makers and decision-makers new opportunities to automatically execute decisions and processes that help enhance transparency, accountability, participation and trust. Yet, many DAOs have a limited lifespan. There is little empirical evidence of the effect of governance elements on the viability of DAOs. Using 220 on-chain governed DAOs, this paper analyses how governance elements (accountability, decision/voting, and incentives) influence the viability of DAOs in the long-term. The findings show that DAOs without weighted decision-making and without incentive structures are more viable than those with weighted decision power and incentive mechanisms. This suggests that financial and share-like DAO governance elements do not or may even negatively contribute to the long-term viability of DAOs. Also, voting power distribution is found to have a statistically significant influence on DAOs’ viability. We further propose a preliminary theory that relates governance elements to the long-term viability of DAOs. These insights will help policy-makers in designing more viable DAOs. Future research should investigate how DAO objectives, the chosen deployment infrastructure and the type of users can impact the long-term viability of DAOs. |
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Keywords | Blockchain ; decentralized autonomous organization (DAO) ; governance ; policy design ; public administration ; Political science ; J ; Social Sciences ; H |
Subject code | 320 |
Language | English |
Publishing date | 2023-10-01T00:00:00Z |
Publisher | Taylor & Francis Group |
Document type | Article ; Online |
Database | BASE - Bielefeld Academic Search Engine (life sciences selection) |
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