Abstract
This study empirically investigates the distribution of control and diversity in decentralized autonomous organizations (DAOs) on the Ethereum blockchain. It uses a number of measures-the Nakamoto coefficient, Gini coefficient, Her-findahl-Hirschman index, Theil index, Shannon entropy, and Simpson diversity index-to assess decentralization and fairness in the distribution of control tokens. The analysis reveals a complex landscape in which some DAOs exhibit decentralization with diversity in the distribution of control, while others exhibit significant concentration of power and inequality in the distribution of power. A key observation is the coexistence of a broad distribution of control among EOA addresses with significant inequality in the ownership of control tokens. This indicates that a broad distribution of control does not always correlate with a fair distribution of management tokens. The study also highlights the possibil-ity of delegation mechanisms that may lead to a more equitable distribution of power compared to direct representa-tion. This study provides insight into the governance dynamics of DAOs by demonstrating the complex multi-level bal-ance between decentralization and centralization in a decentralized technology infrastructure.
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