Decentralized Autonomous Organizations Research Articles

AI-Enabled Governance in Cryptocurrency Communities

This paper explores how the combination of artificial intelligence (AI) can enhance governance in cryptocurrency communities and Decentralized Autonomous Organizations (DAOs). Using insights from blockchain, machine studying, and social computing, we examine moral concerns and dangers While addressing them, we discuss the potential of AI to improve efficiency, transparency and inclusion in phrases of governance shape. Through case studies, we demonstrate sensible packages of AI, consisting of social media sentiment analysis, algorithmic trading, and decentralized forecasting markets. We explore the impact of AI on governance token systems, selection- making processes and community-pushed governance models. Challenges along with algorithmic bias, records privacy, and the need for human oversight are discussed in conjunction with suggested studies suggestions and great practices for implementing responsible AI. This paper explores how the integration of synthetic intelligence (AI) can enhance governance in cryptocurrency communities and decentralized c Decentralized Autonomous Organizations (DAOs). Using insights from blockchain, gadget learning, and social computing, we examine moral worries and dangers While addressing them, we talk the potential of AI to enhance performance, transparency and inclusion in terms of governance structure. Through case research, we display realistic programs of AI, which include social media sentiment evaluation, algorithmic trading, and decentralized forecasting markets. We discover the effect of AI on governance token systems, decision-making methods and network-pushed governance models. Challenges including algorithmic bias, records privateness, and the need for human oversight are mentioned in conjunction with suggested research tips and exceptional practices for the responsible use of AI By clarifying the ability of AI in cryptocurrency governance, we help bridge the space among AI and decentralized selection-making.

Economic policy uncertainty and company stock prices: empirical evidence from blockchain companies

Blockchain (BC) is a sought-after technology, and the investment in it has garnered significant attention. We utilize a wavelet-based quantile-on-quantile approach to investigate the correlation between economic policy uncertainty (EPU) and BC stock market prices across various periods and market circumstances. The findings suggest an increase in EPU has the potential to depress the stock price of the BC company. It is evident from the outcomes across various time scales that EPU exerts a broad inhibitory influence on the stock price of the BC company in the immediate term, with the extent of this effect potentially diminishing as time passes.

DAO Dynamics: Treasury and Market Cap Interaction

This study examines the dynamics between treasury and market capitalization in two Decentralized Autonomous Organization (DAO) projects: OlympusDAO and KlimaDAO. This research examines the relationship between market capitalization and treasuries in these projects using vector autoregression (VAR), Granger causality, and Vector Error Correction models (VECM), incorporating an exogenous variable to account for the comovement of decentralized finance assets. Additionally, a Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model is employed to assess the impact of carbon offset tokens on KlimaDAO’s market capitalization returns’ conditional variance. The findings suggest a connection between market capitalization and treasuries in the analyzed projects, underscoring the importance of the treasury and carbon offset tokens in impacting a DAO’s market capitalization and variance. Additionally, the results suggest significant implications for predictive modeling, highlighting the distinct behaviors observed in OlympusDAO and KlimaDAO. Investors and policymakers can leverage these results to refine investment strategies and adjust treasury allocation strategies to align with market trends. Furthermore, this study addresses the importance of responsible investing, advocating for including sustainable investment assets alongside a foundational framework for informed investment decisions and future studies in the field, offering novel insights into decentralized finance dynamics and tokenized assets’ role within the crypto-asset ecosystem.

FUTURE OF BLOCKCHAIN GOVERNANCE: EXPLORING DECENTRALIZED DEMOCRACY

Blockchain technology presents a paradigm shift in governance, offering decentralized frameworks that challenge traditional centralized systems. This paper delves into the concept of decentralized democracy within blockchain governance and its implications for the future. The paper outlines the foundational principles of blockchain, highlighting its ability to facilitate transparent, trustless transactions through distributed consensus mechanisms. The paper then examines various governance models, from centralized to decentralized approaches such as on-chain governance and decentralized autonomous organizations (DAOs), assessing their strengths and weaknesses. Moreover, the research explores the concept of decentralized democracy, elucidating how blockchain enables transparent, auditable voting systems for direct stakeholder participation in decision-making.

Agent-Based Model of Initial Token Allocations: Simulating Distributions post Fair Launch

With advancements in distributed ledger technologies and smart contracts, tokenized voting rights gained prominence within decentralized finance (DeFi). Voting rights tokens (a.k.a. governance tokens) are fungible tokens that grant individual holders the right to vote upon the fate of a project. The motivation behind these tokens is to achieve decentral control within a decentralized autonomous organization (DAO). Because the initial allocations of these tokens is often undemocratic, the DeFi project and DAO of Yearn Finance experimented with a fair launch allocation where no tokens are pre-mined and all participants have an equal opportunity to receive them. Regardless, research on voting rights tokens highlights the formation of timocracies over time. The consideration is that the tokens’ tradability is the cause of concentration. To examine this proposition, this article uses an agent-based model to simulate and analyze the concentration of voting rights tokens post three fair launch allocation scenarios under different trading modalities. The results show that regardless of the allocation, concentration persistently occurs. It confirms the consideration that the ‘disease’ is endogenous: the cause of concentration is the tokens’ tradability. The findings inform theoretical understandings and practical implications for on-chain governance mediated by tokens.

Tokenistic behavior? Exploring Blockchain and DAOs as a participatory practice in museums

Abstract The paper examines the possibilities offered by decentralized autonomous organizations (DAOs) for supporting audience participation in the museum sector . DAOs, a type of digital infrastructure underpinned by blockchains and smart contracts, have been seen as informing a more autonomous, self-managing, transparent, and more efficient online organization, one capable of shaping how users participate and communicate with one another. At the same time significant questions have been raised over how DAO technologies complicate the human issues of democracy and shared authority. This paper explores and evaluates the impact of DAO structures in the context of museum participation, specifically viewing them through the lens of shared authority and democracy. It argues that these technologies are capable of offering evidence-based participation, but that this is contingent on access and trust.

Skin in the Game: The Transformational Potential of Decentralized Autonomous Organizations

Decentralized autonomous organizations (DAOs)—collectively owned human-machine systems deployed on a blockchain that self-govern through smart contracts and the voluntary contributions of autonomous community members—exhibit the potential to facilitate collective action in managing digital commons. Yet the promise of decentralization and collective action is difficult to sustain. To this end, this paper critically examines the transformational potential of DAOs in the case of decentralized finance. Using a polycentric governance lens, we contribute to the literature on technology-enabled forms of organizing with a model explaining the transformational potential of DAOs to facilitate collective action in digital commons. Our study highlights that (1) DAOs are a new form of organizing enabled by blockchain technology in which individuals are free to pursue their objectives within a general system of rules enforced by smart contracts, (2) collective action for managing digital commons can be sustained through a set of three mechanisms—sustained participation, collective direction, and scaled organizing, and (3) DAOs tend to strike a balance between centralized and fully decentralized or community-based governance by implementing a polycentric governance system involving a combination of human and machine agency that creates skin in the game.

Blockchain for social good: A review of applications in humanitarian aid and social initiatives

Blockchain technology has emerged as a revolutionary force with the potential to address pressing social challenges and transform traditional paradigms in humanitarian aid and social initiatives. This paper provides a comprehensive review of the diverse applications of blockchain in fostering social good, particularly in the realms of humanitarian aid and social initiatives. The decentralized and transparent nature of blockchain offers a paradigm shift in the way charitable organizations operate and deliver aid. Smart contracts on blockchain enable transparent and tamper-resistant transactions, ensuring that resources are allocated efficiently and reach intended beneficiaries. The elimination of intermediaries reduces the risk of corruption and ensures a more direct and accountable flow of funds. In the context of humanitarian aid, blockchain facilitates the creation of decentralized identity systems, ensuring secure and verifiable identities for displaced populations. This aids in the efficient delivery of aid, as well as financial inclusion for those without access to traditional banking services. Moreover, blockchain enhances supply chain transparency, enabling the tracking of donations from inception to distribution, reducing fraud and ensuring the authenticity of goods. Social initiatives, too, benefit from blockchain's transformative capabilities. Decentralized autonomous organizations (DAOs) enable communities to collectively make decisions and manage resources. This fosters a sense of ownership and empowerment among participants, promoting sustainable social development. Additionally, blockchain-based token economies incentivize positive behaviors, encouraging individuals to contribute to social causes in meaningful ways. Despite these promising applications, challenges such as scalability, regulatory uncertainties, and technological literacy remain. This paper calls for continued research and collaboration to unlock the full potential of blockchain for social good, emphasizing the need for innovative solutions that can address the unique challenges faced by humanitarian and social initiatives.

Democratic Erosion of Data-Opolies: Decentralized Web3 Technological Paradigm Shift Amidst AI Disruption

This article investigates the intricate dynamics of data monopolies, referred to as “data-opolies”, and their implications for democratic erosion. Data-opolies, typically embodied by large technology corporations, accumulate extensive datasets, affording them significant influence. The sustainability of such data practices is critically examined within the context of decentralized Web3 technologies amidst Artificial Intelligence (AI) disruption. Additionally, the article explores emancipatory datafication strategies to counterbalance the dominance of data-opolies. It presents an in-depth analysis of two emergent phenomena within the decentralized Web3 emerging landscape: People-Centered Smart Cities and Datafied Network States. The article investigates a paradigm shift in data governance and advocates for joint efforts to establish equitable data ecosystems, with an emphasis on prioritizing data sovereignty and achieving digital self-governance. It elucidates the remarkable roles of (i) blockchain, (ii) decentralized autonomous organizations (DAOs), and (iii) data cooperatives in empowering citizens to have control over their personal data. In conclusion, the article introduces a forward-looking examination of Web3 decentralized technologies, outlining a timely path toward a more transparent, inclusive, and emancipatory data-driven democracy. This approach challenges the prevailing dominance of data-opolies and offers a framework for regenerating datafied democracies through decentralized and emerging Web3 technologies.

A Novel DAO-Based Parallel Enterprise Management Framework in Web3 Era

This article proposes a novel parallel management mode based on decentralized autonomous organizations (DAOs) for enterprises by utilizing the artificial systems, computational experiments, parallel execution (ACP) approach, parallel intelligence theory, and blockchain technologies, to realize the distributed management of an enterprise. The artificial enterprise DAO (EnDAO) corresponding to the actual enterprise is constructed, and they constitute a parallel system via virtual–real interaction and parallel execution. Through the non-fungible token (NFT)-based incentive mechanism, metaverse-based virtual learning and training, as well as DAO-based distributed management and decision-making, the management and control of the actual enterprise as well as its employees can be carried out. By virtue of the virtual–real interactions of three types of employees, as well as the virtual–real feedback of three closed loops in the parallel systems, DAO-based parallel management for enterprises can realize descriptive intelligence, predictive intelligence, and prescriptive intelligence. On this basis, this article takes the recruitment-oriented key performance indicator (KPI) management of a startup technology enterprise as the case to introduce the operation processes and illustrate the superiorities of the proposed DAO-based enterprise parallel management mode.

Decentralized Autonomous Organization (DAO) – A Review

The idea of DAO development is a novel and radical solution to the constant centralization of power and financial capabilities of the world community. Unlike decentralized finance (DeFi) in general, which uses blockchain to replace trusted third parties in banking, lending, investing, and other financial transactions, DAOs use technology to transfer some or all decision-making power from organizations to individuals using a code for setting guidelines, namely how decisions are made and implemented. Investors place their digital assets in liquidity pools using code-driven smart contracts without the need for an intermediary to ensure that all parties meet their obligations. In exchange for their investment, investors receive a token that allows them to participate in the centralized management of the pool, including the ability to vote to choose which beneficiaries receive a portion of the income that becomes a donation and set parameters for smart contracts. And although this scheme, in addition to advantages, has disadvantages, the idea of DAO continues to develop. At the moment, this development is limited only to the digital environment. Yet, the perspective is impressive.

A Statistical Study Based on the Top 50 Blockchain Companies Analyzing the Current Development of Blockchain Applications

Nowadays, because of the Bitcoin and meta universe, blockchain wins a lot of attention from both the public and researchers, more and more people have started to work hard in this new area which has led the quick updates of the latest research progress and applications. This article tries to help other researchers have a clearer understanding of the current situation of blockchain applications. Chapter One first gives the historical background of blockchain's applications. It then comes out the research on the top popular applications in the blockchain field, how they become popular, and what improvements they can have. On the one hand, it aims to help researchers and entrepreneurs understand the market distribution and blockchain application development trends. On the other hand, it provides some ideas about existing problems of blockchain applications.

Governing decentralized autonomous organizations as digital commons

Effective governance plays a pivotal role in aligning the interests of diverse stakeholders and shaping the strategic directions of organizations. However, the dominant model of corporate governance often concentrates power among a limited group of directors, leading to concerns about potential power imbalances that may distort fair representation and compromise decision-making integrity. Decentralized autonomous organizations (DAOs) present an alternative model that distributes power among a broader base of stakeholders, fostering a more democratic approach to collective decision making and governance. However, the openness and fluidity inherent in DAOs can expose them to coordination challenges, governance complexities, and potential exploitation by malicious entities. In response to possible governance challenges, we consider DAOs as digital commons and adapt Ostrom's eight principles for governing the commons to propose a new governance framework for DAOs. This governance framework is designed to foster the collective stewardship of shared digital assets and the equitable distribution of decision-making authority in the Web3 era. As DAOs emerge as a novel organizational structure, our governance framework aims to maintain their resilience, inclusiveness, and decentralization, reinforcing their crucial role in the evolving Web3 landscape.

Towards Blockchain Decentralized Autonomous Organizations (DAO) Design

Towards Blockchain Decentralized Autonomous Organizations (DAO) Design

Enhancing the democratic nature of voting processes within decentralized autonomous organizations

PurposeThis paper aims to explore the problem of power imbalance within decentralized autonomous organizations (DAOs) and propose potential solutions that could contribute to enhancing the democratic nature of DAOs.Design/methodology/approachIn this paper, the authors apply a qualitative methodology. Using a thematic coding analysis, the authors process data collected from interviews with 11 experts.FindingsMultiple factors contribute to the perceived lack of democracy within DAOs, such as token concentration and effective stakeholder communication. Next, quadratic voting has the potential to enhance democracy within DAOs, but this mechanism must be implemented mindfully. Finally, the results were nuanced when it comes to the effectiveness of liquid democracy in DAOs to enhance voter participation and representation.Originality/valueTo the best of the authors’ knowledge, this paper is one of the first research contributions to propose recommendations to address the power imbalance within DAOs and to contribute to the advancement of decentralized decision-making structures.

Insight into Voting in DAOs: Conceptual Analysis and A Proposal for Evaluation Framework

Driven by the development of blockchain infrastructures and the promotion of Web 3, more than 4000 Decentralized Autonomous Organizations (DAOs) have been developed as online organizations jointly owned and managed by their members who work for the same interests. Voting mechanisms as the democratic administration of DAOs without the involvement of central authority, are crucial to both the development of the DAO community and the protection of individual interests. This paper is one of the first analyses of the critical role of voting mechanisms in DAOs' operation. In the absence of systematic studies of voting mechanisms in DAOs, we propose five tiers of decentralization in DAO voting which marks the critical difference between DAO voting and conventional voting. We also define four dimensions to comprehensively evaluate the performance of DAO voting mechanisms, which identify the demands and characteristics of DAO voting and put forward clear design guidelines for voting mechanisms in DAOs. Finally, we take seven typical voting mechanisms as examples and analyze their performance in our proposed evaluation schemes.

A Comparative Analysis of Centralized and Decentralized Developer Autonomous Organizations Managing Conflicts in Discussing External Crises

Understanding whether and how online developer communities resolve conflicts that occur in discussions is critical. Few studies focused on the conflicts caused by external crises, such as geopolitical events (e.g., the 2022 Russo-Ukrainian Crisis). We comparatively studied how a decentralized autonomous organization (DAO), Aave project community, and a centralized autonomous organization (CAO), GitHub project community, managed external crises caused by conflicts. Our mixed-method analysis showed that a DAO could be better than a CAO for mitigating conflicts. And blockchain technologies (i.e., voting and cryptocurrency) played vital roles. To address the low voter turnout, we proposed adding a monetary incentive to engage more DAO members in forming common goals.

Location factors and ecosystem embedding of sustainability-engaged blockchain companies in the US. A web-based analysis

Location factors and ecosystem embedding of sustainability-engaged blockchain companies in the US. A web-based analysis

THE EVOLUTION OF SMART CONTRACT PLATFORMS: A LOOK AT CURRENT TRENDS AND FUTURE DIRECTIONS

Blockchain-based smart contracts are self-running computer programs that can automate a variety of commercial activities. Currently, the majority of these decentralized applications are developed using smart contract platforms like Polkadot, Cardano, and Ethereum. In addition to analyzing current technology developments and prospective future applications, this article provides a historical review of smart contract platforms. The study emphasizes the significance of smart contract platforms for supporting blockchain-based applications and enabling decentralized finance (DeFi). It also looks at the emergence of layer-2 scaling solutions, the introduction of non-fungible tokens (NFTs), and the growing need of interoperability among different smart contract platforms. The article also looks at the potential for multi-chain smart contracts, the effects of quantum computing, the integration of AI and ML technologies with smart contract platforms, and the potential for smart contract platforms to support decentralized autonomous organizations (DAOs). The difficulties of expanding smart contract platforms, the requirement for uniformity in the creation of smart contracts, and the potential for smart contract platforms to revolutionize sectors like healthcare, real estate, and supply chain management are also covered. The paper emphasizes the significance of ongoing innovation and development in smart contract platforms for the expansion of the blockchain ecosystem as it draws to a close.

VOTING IN DAOs

In recent years the adoption of smart contracts, in blockchain platforms, has increased substantially. One of the main applications of smart contracts are the so called Decentralized Autonomous Organizations (DAO), which originated from an idea envisaged by Buterin, in his Ethereum white paper. Indeed, DAOs are decentralized organizations, where the members implement their decisions using smart contracts. In the article, we introduce a simple framework for a DAO, and then we discuss some governance issues. In particular, we focus on how DAO members could be induced to dedicate sufficient time to voting sessions, for a proper functioning of the organization. Indeed, recent empirical research suggests how the members’ participation rate, to voting activities, has a meaningful positive correlation with to a DAO's performance. More specifically, we formalize the notion of attention time and propose a simple model for the so-called Holographic Consensus, a protocol introduced by the DAOStack platform to solve the issue of limited time dedicated to governance, discussing under what conditions DAO members may choose the so-called boosting voting procedure.