Priority Leaderboard

Priorities anchored in practitioner experience (Harmonica sessions and workshops). Evidence from academic research grouped by stance: supporting, contrasting, or extending.

How scores are calculated

Practitioner-Anchored Scoring

In Harmonica-first mode, priorities are set by practitioners -- participants in Harmonica deliberation sessions and workshop contributors. The score reflects how many practitioner sources independently raised this priority. Higher scores indicate broader consensus among those doing the work.

Evidence from Knowledge Commons

After practitioner priorities are identified, academic papers and research from the knowledge commons are analysed for relevant evidence. Each piece of evidence is classified by stance:

  • Supporting -- research that reinforces or validates the practitioner priority
  • Contrasting -- research that disagrees, identifies risks, or adds caveats
  • Extending -- research that adds new dimensions the practitioners did not mention

Evidence does not affect the score -- it provides context for deliberation.

Community Votes

Community votes are collected separately and do not affect the score or ranking in this mode. The ranking is determined entirely by how many practitioner sources raised the priority. Use the "Show community votes" toggle to see or hide vote counts -- they are informational only and can be used as a signal for further discussion.

Recalculating scores...
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Reduce concentration of power, plutocracy, governance capture, and conflicts of interest
1.00
Evidence 106 195 11 24
"“DAOs and other organizations often fall back on highly centralized decision-making that is intransparent and potentially unfair.”"
"“(i) oracle failures or disputes in prediction markets (ii) investment rules in DAO treasuries being unclear and the source of contention (iii) foundations overriding DAO member votes (iv) self-dealing and quid-pro-quo handouts of DAO treasury funds”"
"Centralization is an ongoing issue because, as peers choose to group, they do not gain ownership, and so a small group of owners remain in control while newcomers are powerless."
"Every DAO, every chat group (such as on Telegram or Discord), every HOA, every club, every corporation is controlled by a tiny council, while the users can only vote on high level subjects, and never gain real ownership, and are certainly never allowed to secede (split into subgroups)."
""Most DAOs have threshold in which only participation from the core team is enough to pass proposals, so there are usually no need to involve the right audience fit.""
"Judiciary in many States is perceived as corrupt or influenced by opaque appointment processes."
"the probability of being selected is proportional to the number of tokens you stake. This means wealthy participants can dominate juries regardless of their expertise in the subject matter."
""everybody is well aware of the vote whipping phenomenon that happens behind the scenes of any high stakes governance proposal""
""En abril de 2022, un atacante usó un préstamo flash ... para comprar suficientes votos, aprobar una propuesta maliciosa para vaciar la tesorería""
""Without a coherent, cross-DAO view, emerging patterns such as delegate concentration, treasury exposure correlations, or repeated governance design flaws across ecosystems are difficult to detect early.""
""Participation becomes narrower. Governance becomes more concentrated among those with the time or resources to monitor full-time.""
"“the same few entities/people repeatedly provide the ‘decisive’ analysis, while the majority votes by proxy”"
"we've very often seen proposals that are, managed through token governance where venture capitalists who own a bunch of the token are able to sway the votes significantly"
"the entire community feeling one way about a particular issue, but venture capital is feeling like another"
"moving beyond token governance. Pure token governance is just clearly incredibly flawed in many ways when anyone can just buy the token"
""One governance challenge I observe is the gap between formal decentralization and actual decision making influence.""
""low engagement, complexity, and token weighted voting often result in influence concentrating among a small group of highly engaged or well capitalized actors.""
""In almost all major DAO ecosystems, there are at least 2-5 professional delegates in the top 10. These teams typically do not hold any tokens, and are not actually building in/using the protocol/tech being built in the ecosystem.""
""those with no skin in the game hold a lot of voting power in most DAOs""
""Most folks tend to assess proposals only from the perspective of token price impact, which often leads to misalignment with the reality & needs of the ecosystem""
"many token DAOs have a very high concentration of power."
"There are a few token holders which have an overwhelming number of voting tokens or a significant number of voting tokens, which is disproportionately higher than the majority of other token holders."
"This stems from initial contributions to core team members and to financial investors like VCs."
"The result is that small token holders feel disenfranchised, and token DAOs often make decisions in small side channels comprised of a few large token holders."
"anti-capture.com has a dashboard where they show how many token holders need to vote in order for the DAO to reach quorum. In many cases, that number is between 1 and 3 token holders."
""If tokenomics are used to distribute voting power then you end up facing issues with votes being 'bought' or power concentration along the lines of wealth concentration. This tends towards plutocracy.""
"DAO governance is centralised, opaque and very noisy."
"Votes often pass because a relatively small number of large delegates voted in favour while tokens are hardly ever re-delegated: meaning that a small elite of 'old' delegates controls votes."
"a lot of back-door lobbying is needed to have proposals be accepted and pass."
"“We repeatedly see secondary markets around governance rather than around the protocol itself: vote buying / bribing markets ... lobbying delegates”"
"“Delegation concentrates power without increasing decision quality”"
"“The goal is that influence follows participation, not capital.”"
"“Influence is intended to come from demonstrated involvement rather than passive ownership.”"
"“the process of selection happens is oqpaque.”"
"“In another DAO a privileged vendor was awarded 100k to ‘R&D’ the problem.”"
"“Currently we see DAOs paying a premium with zero competition or sane evaluation of the tender process.”"
"“We have many cases where we see career ‘DAO contributors’ spin the same program and oversight committees.”"
"“these so called committees becoming a centralising force and very rarely create processes or procedures that involve the broader token holder base.”"
"“Role Concentration Across Committees”"
"“Perpetual Renewal Without Contestation”"
"“Process Creation Happens Internally, Not Publicly”"
"“If DAOs are supposed to be a democratising force. Our decision system should be broad and inclusive not centralising.”"
"I observe the same few people with large balances voting in DAOs"
"People with low token balances don't bother voting because they know they can't affect the outcome."
"In many votes, I only see voters or delegates with large balances"
"Signaling and debating are done through a centralized platform administrated by a small group, and participation rules are different than those for voting."
"There's no check on admin power in DAO message boards."
"Airdrops have created a small segment of influence in dao governance that at a current point makes it impossible to create an even playing field."
"It seems that from day one it becomes more of a smaller conversation with proposals geared towards delegates (who most became large delegates from airdrops"
""extreme centralization of voting power (Gini coefficient 0.89, Nakamoto coefficient 4)""
""The top 1% of holders control nearly two-thirds of all voting power""
""The bottom 97% of addresses hold a negligible share of voting power""
""only 4 entities are needed for 51% control""
""opaque compensation structures, misaligned incentives, and a systemic bias that favors insiders""
""secret bonus of 40,000 unvested ENS tokens distributed to stewards""
""rewarding individuals based on 'friendship over contribution'""
""fostering an exclusionary environment that punishes rigorous scrutiny rather than rewarding it""
""a delegate with a minimal number of delegated votes (e.g., 9 votes) holds the same inherent responsibility as a delegate commanding substantial voting power""
""an elected Nominee serving as a Steward may not take up the role for more than two working groups during a single Term""
""when you give power to people that have no economic exposure to the outcomes, you just enter a very classical principal agency problem""
""there are very strong incentives for the equity holders to just funnel all the value towards the equity and just use the token as a funding mechanism only""
""with Arbitrum's case, it was a free for all raid on shared resources where you would have multiple stakeholder groups try to capture the treasury""
""6% which then results in whale dominance and lack of decentralisation""
"“We do see many DAOs, where decisions are made by a handful participants, essentially being oligachies.”"
"“This is due to concentration of voting power, but also lack of participation from other potential actors.”"
"“One of the biggest issues I see in many DAOs (including RARI DAO) is that the Foundation is taking on 'DAO operations' work - i..e. management of the treasury without any visibility or current transparency of the spend.”"
"“the Foundation is managing day-2-day operations themselves and treating DAOs and the delegates with lip service.”"
"“Nepotism, due to a lack of trusted tools to assess the correct fit for roles, with a lack of overall trust in the system and individuals that are overseeing these protocols and DAO’s.”"
"“In every single case of failed governance and lack of accountability and trust there is always the one with the most money tied that actually has the most sway.”"
"“Even if they were just the early investor or founder but are not suited to leading after the initial idea implementation.”"
"“This often leads to the high churn rate of qualified contributors leaving, as they continue to see their efforts overlooked or co-opted by others.”"
"“This leads to further ossification of poor leadership often to the detriment of the protocol, DAO or project regardless of the amount of money involved.”"
"“Social and epistemic capacities (deliberation quality, shared language, institutional memory, stewarding roles) are treated as secondary or ‘soft,’ so they are rarely resourced or measured with the same rigor as token flows.”"
"“Many Web3 organizations end up with brittle governance: systems that look elegant on paper but fail under real-world complexity, create hidden forms of centralization, and struggle to adapt as conditions change.”"
"“We see participation fatigue, concentration of informal power among the ‘mechanism literate,’ and recurring cycles of crisis-driven governance changes.”"
"“Protocols like Lido and others [are] experimenting with dual or layered governance after discovering that pure token voting produced apathy, whale dominance, and difficulty scaling complex technical decisions.”"
"“Delegates bring back in politics and all the social manipulation that comes with it.”"
"“Governance just becomes a popularity contest because people want to delegate their votes instead of having their own voice.”"
"“How do we engage in decentralized governance when we're just delegating that back into points of centralization based on social factors that are subjective and not transparent?”"
"“Every DAO I've been in people either vote based on how the ‘influencer’ they support votes or they simply delegate to them.”"
""Token Voting Failure & Plutocracy""
""\"Number Go Up\" token-goal tends to result in hierarchy""
"['New revenue generating protocols deprioritize governance.', 'Most existing DAOs with revenue may not have incentives right for token holders to keep participating.', "So what happens to the 'voter'?"]"
"broken contributor economies and fragmentation expand voter apathy across all stakeholders - delegates aside - decision fatigue worsens it and plutocracy"
"Broken contributor economies compound plutocracy - non-whales have no reason to acquire and hold governance tokens, so ownership concentrates further"
"Small holders have no voice. No means to grow their stake."
"Ossification of power and control"
"Incentive misalignment: token holding insufficient to solve principle-agent problem"
"Governance without some kind of structure does not work - see token voting issues; re-centralisation, etc."
"the rational response, delegation, reintroduces the centralization governance was designed to eliminate"
"Outside of delegates, most stakeholders have no incentive beyond impact - and outside the top 10-20 VP holders, impact isn't real."
"Plutocracy makes apathy rational in absence of functional contributor economies"
"multiple significant causes of this: too-high-stakes, politics, governance capture, etc"
""Teams that want to \"Add governance\" but really just need to acrue value to their token""
""making the whole structure just a legal liability wrapper""
"“Visible voting facilitates politicking”"
"No clarity of valuable contribution - so status as decision maker is not as clear ( eg: top delegates)"
"“Concentration risk of Public Goods maintainers”"
"“AI Grant Evaluators (Minimise bias)”"
"## Rep-based voting (i.e Badgeholders v2)"
"End-to-end private voting so participants can't be bribed, manipulated, or pressured - votes reflect conviction, not social dynamics"
"['Political parties', 'Clearly defined interest groups within the DAO', '"Factions"', 'Highlight the power dynamics within organizations (regardless of their legal status).']"
"['This could mean be more transparent with the org chart within a Foundation', 'Have facilitators who are balancing power dynamics in decision making meetings.', 'does this mean third-party facilitators?']"
""progressive decentralization is often doomed to failure because giving up power is virtually impossible""
"Contribution / labor based governance rights"
""Rules that define who has access to roles, what powers roles have, how roles limit each others powers.""
"a small number, often three or fewer, of entities exert control over most decisions"
"The wealthy rule, decentralisation is a myth. Hostile take-overs are incentivised."
"centralized governance in MakerDAO very much exists, while DeFi investors face a trade-off between decentralization and performance of a DeFi protocol"
"traditional token voting captures choices but not intensity. This results in environments dominated by whales, late signaling cascades... We found that decay-bounded lock curves, immutable board configurations, and programmable acceptance thresholds can preserve pluralistic preferences while resisting capture."
"Optimism formalized a two-house system: the Token House (token holders/delegates) and the Citizens’ House (one-person-one-vote based on membership/reputation), aiming to separate “capital-weighted decisions” from “public goods legitimacy.”"
"Bicameral governance constrains whale dominance."
"🔌 Distribute power among many contributors. Community roles should be spread out over many contributors rather than concentrated among 1-3 people."
"Leadership roles should be fluid, flexible, and revokable (can be removed from leadership position) at any time."
"Principal-agent problems make organizations work across “us vs. them” lines."
"The point of decentralization is to reduce the concentration of power or eliminate unilateral control. “Adding more pizzas” can create competition, providing a check on the dominant or incumbent decision maker."
"Organizing at impersonal scale to achieve a given purpose animating collective action entails some measure of concentration of authority and losses to individual autonomy."
"This leads to a need for checks on the special authority exercised by these specially empowered decisionmakers generally, often deemed constitutional constraints in public governance contexts."
"The goal is to reduce the platform risk that any one stakeholder dominates decision making at the expense of others."
"A data router connects users to a decentralized coalition of data providers, including local communities, NGOs, scientific databases, and private companies, enabling comprehensive environmental data access while maintaining local ownership and control."
"For decades, two companies—ISS and Glass Lewis—have dominated proxy advisory services... The two firms control over 90% of the market, and their influence is enormous."
"A limitation in current Governor systems is “all eggs, one basket” delegation... this can cause stagnation and incumbent delegations, increasing risk of soft collusion."
"No contracts exist between the cooperative and its members in an effort to dissolve any hierarchies within the organisation"
"The advisory board can control, name, but also, dismiss, the board anytime."
"In traditional companies, requirements to “maximize shareholder value,” short sighted incentives, and governance control by only the largest financial interests lead to a series of short-term decisions"
"Creating two distinct branches of governance with different membership criteria allows the Collective to match constituents’ incentives with different types of decisions. It also helps the Collective avoid concentration of power, enact safeguards via checks and balances, and evaluate decisions from broader perspectives."
"Across 75 posts with consensus, the top 3 "agents" accounted for 46.6% of consensus-driving events."
"our research reveals a high concentration of voting power among a few members"
"The results indicated that 15 voters were sufficient to concentrate more than half of the DAO’s voting power, which represents only 0.18% of the total number of voters"
"The analysis of the distribution of voting power within the DAO reveals a strong concentration of power, with important implications for the participation of all users in the actual decision-making of the DAO, far from a democratic form of governance."
"Nevertheless, the potential for these influential voters to significantly impact outcomes remains, presenting a potential risk to the democratic integrity of the DAO."
"DeFi platforms showcase elements of centralization, usually in the form of ‘governance tokens’ and power concentration to large coin-holders. This phenomenon can lead to collusion among core decision makers during the governance process."
"Our results show that governance centralization influences the Maker protocol and that the distribution of voting power matters."
"At a poll level, we find that the Gini coefficient is always more than 50% and exhibits a maximum of 98.05%. Given that the Gini coefficient estimation is higher than 0.60 for most of the polls, highly centralized voting power in the Maker governance is established."
"In most polls, the largest voter holds a significant proportion of voting power."
"When the three measurements above are higher, more voting power is controlled by large MKR holders... the centralized distribution of MKR is a signal of governance centralization, indicating that voting in MakerDAO is dominated by large MKR holders."
"Generally, the results bring forward a trade-off between decentralized governance and volume of these two tokens, and we also contend that the influences of dominant decision makers can be complicated."
"In the context of DAO, major holders and supermajority holders can even have contrary effects on the trading volume of governance tokens, which implies the complex relationship between governance and trading dynamics in DeFi."
"we find that voters are centralized in a small group and voting power is unequally distributed among these voters. In most voting activities, the largest voters could account for a significant proportion of votes."
"If a dominant voter proposes changes to the Maker protocol, the aim of such proposals might be tied to their own vested interests. With their large voting power, this could lead to further centralization of power and potential collusion during the development of Maker protocol."
"While we reveal that the majority of voting power is concentrated in the hands of a small number of addresses"
"The Nakamoto coefficients ... reveal extreme centralization in all three governance systems: In the case of Compound, only 8 delegates can dictate any governance action using their majority. For Uniswap, this number is 11; for ENS, it is 18."
"for Compound and Uniswap, almost all the voting power lies in the hands of delegates that receive the majority of their voting power from a single address. In this sense, their governance systems are similar to shareholder meetings of traditional companies, where a small number of large investors represent their interests. ENS governance, on the other hand, more resembles a decentralized community."
"Token voting potentially clashes with the goal of decentralization because of the danger of two types of entrenchment that threaten to create the equivalent of centralized management."
"The mechanism described above defeats potential entrenchment in the form of explicit or implicit control. Holding a majority or supermajority of tokens no longer secures control of the DAO."
"it is important for any DAO governance approach innovation or mechanism to be EV-robust in the sense of being effectively resistant both to deleterious uses of empty voting or hidden ownership and to any tendency for the decision mechanism to be compromised or blurred as a result of either manipulation."
"Collusion results in winning bidders extracting more added value, reducing the attractiveness ex ante for initial and on-going investment."
"The fact that DAOs have been characterized by low participation rates and a few key players running the show suggests that this situation may be common. Outside candidate collusion with the insiders creates a substantial opportunity for reducing the social surplus that otherwise would accrue to the other token holders."
"The danger of value destruction arises from the possibility that the control party will take the equivalent of a negative economic position in the DAO, one that would increase in value if the DAO flounders, and then will use control to cause the DAO to perform poorly or even to fail entirely."
"Direct control by token holders creates the danger of “treasury raids.”"
"In addition, the immutability of the auction provisions prevents incumbents from distorting the auction process to their advantage by making control shifts via the auction more difficult or by creating rules that favor incumbent bidders."
"Most importantly, control is continuously contestable. Any party can initiate an auction. Even a majority token holder cannot maintain control in the face of an auction except by being the highest bidder."
"First, the threat of future auctions has a disciplinary effect with respect to misbehavior or poor performance on the part of existing governing parties, including the case in which a mass of diffuse token holders determine the DAO’s path."
"It is impossible for large token holders, including founders or parties holding a token majority, to retain control if there are parties who will outbid them in an auction."
"Observers have pointed out that many DAOs currently are “undemocratic” due to implicit control by founders or others who may have relatively large token holdings while being surrounded by many small, disinterested holders of the rest of the tokens."
"However, concerns persist about potential centralization in token ownership and decision-making, which could undermine their democratic potential."
"Non-decentralized aspects such as large voting coalitions also affect DAO value."
"Larger coalitions may increase the risks of coordinated voting that benefits specific groups at the expense of the broader community, especially in systems without on-chain transparency to ensure equitable representation."
"Off-chain governance, in this context, allows dominant factions within the development team to exert outsized influence over decision-making, potentially alienating the broader DAO community and undermining decentralization."
"power concentration is also negatively associated with DAO treasury size, suggesting that concentration of decision-making power among very powerful governance tokenholders is detrimental to DAO treasury size."
"the presence and detrimental impact of voting coalitions highlight the need for governance token ownership disclosure rules that prevent voting competition-reducing voter collusion."
"Heavily centralized token allocations may result in situations where a small set of super-users can unilaterally change the protocol – potentially at the expense of everyone else. Moreover, a heavily concentrated distribution may create an ecosystem where much of the value is captured by a small number of actors."
"there is a particular risk that high ownership concentration and complex wrapping structures introduce governance risks"
"The concentration of voting rights is another issue, as voting power is typically tied to token ownership, leading to plutocratic governance where a few wealthy stakeholders dominate decision-making"
"Many organizations experience centralization, as control over decisions and code often remains with a small group, such as the core team"
"Financial management will be conducted through a multi-signature wallet, ensuring that no single individual has control over resources."
"Campajola, C., ... (2022). The evolution of centralisation on cryptocurrency platforms. ... Sun, X., Stasinakis, C., & Sermpinis, G. (2024). Decentralization illusion in decentralized finance: Evidence from tokenized voting in MakerDAO polls. ... Liu, X. (2023). The illusion of democracy? An empirical study of DAO governance and voting behavior."
"The token distribution for all four observed projects is relatively concentrated."
"none of the distribution methodologies successfully achieved a Nakamoto coefficient surpassing 100 addresses, indicating that none of the projects require a quorum of more than a hundred addresses to effectively enact governance decisions."
"the involvement of early-stage venture capital investors appears to correlate with a higher concentration of governance tokens amongst fewer addresses."
"we evaluate their involvement in decision-making processes, discovering that in at least 7.54% of all DAOs, contributors, on average, held the necessary majority to control governance decisions. Furthermore, contributors have singularly decided at least one proposal in 20.41% of DAOs."
"contributors tend to be centrally positioned within the DAO governance ecosystem, suggesting the presence of inner power circles."
"decision-making power can be concentrated in the hands of a few"
"Figure 5 indeed shows a very high concentration level for contributors in all networks with a peak above 7000"
"contributors are overrepresented in the decision-making process of certain DAOs compared to other governance users."
"we found evidence of co-voting patterns among contributors, which is an indicator of the existence of inner circles of power in DAOs."
"In rare cases, we find that the outcome of a proposal has been dominated by contributors of other spaces over the self-contributors of the proposal’s space."
"In 30 proposals, other-space contributors ( ) had the relative majority in the winning choice and overruled the same-space contributors ( ), voting for the second choice."
"However, in some DAOs, the contracts are controlled by specific developers. This allows the developers to arbitrarily control the contract without obtaining permission from the governance process."
"Minority members may need to raise disputes against specific decisions, particularly in situations where a single member controls the majority of voting power."
"With regards to developers, they should be obliged to disclose all privileged addresses to their members or, alternatively, mandate that all privileged functions be owned by the governance contract."
"Centralized regulatory models, while offering streamlined governance and clear accountability, risk concentrating power and control in the hands of a few entities—whether they are governments, corporations, or other stakeholders."
"Embedding decentralized governance at the core of AI regulation can help us move toward a future that prioritizes inclusivity, mitigates risks of power concentration, and enables all citizens to shape how AI impacts their lives."
"To address concerns about centralized control, the ETHOS framework advocates for the use of DAOs to establish a transparent, participatory, and scalable governance structure."
"We show that parties with fewer self-owned votes and those affiliated with the controlling venture capital firm, Andreesen Horowitz (a16z), receive more vote delegations."
"Being an a16z affiliate significantly increases the votes received from others, by factors between 2,689 and 3,547."
"Our analysis reveals a governance structure that preserves the appearance of decentralization while enabling tight control within the ecosystem."
"the concentration of voting power remains sufficiently high to raise fundamental questions about whether DAOs genuinely achieve their decentralization objectives."
"being an a16z affiliate has a substantial effect—an a16z affiliate receives about 2,689 and 3,548 times the votes compared to a non-affiliated delegate"
"The strong influence of a16z and its affiliated members is consistent with a window-dressing strategy of a16z for Uniswap to appear decentralized in terms of governance, while tight control rests with a16z."
"The “Top5” group (n=84) comprises all unique delegates who ranked among the five largest voters in at least one voting event during our sample period."
"a16z Affiliate 12.502*** ... 12.783*** ..."
"The results reveal recurring governance patterns, including low participation rates and high proposer concentration, which may undermine long-term viability"
"Feichtinger et al. [4] found that voting power remains concentrated in most DAOs. In their study of 21 governance systems, 17 were controlled by fewer than 10 participants."
"Governance reforms targeting concentration risk, such as token lockups, quadratic voting, or partial delegation, may help reduce disproportionate influence without discouraging large token holders from participating."
"In particular, large token holders often propose and pass initiatives with minimal community input."
"For the vast majority of projects, voter participation is very low and in many cases it is clear that a small group of actively engaged parties, including typically, some large holders, predominate in governance."
"Feichtinger et al. (2023... document very low Nakamoto coefficients... 17 of the 21 DAOs have either a delegate or token holder Nakamoto coefficient of less than 10."
"Epistemic Danger from Whales: Certain parties may hold a very large portion of the total voting rights either stemming from their own token ownership or from delegation. In approaches such as one-token-one-vote that do not employ optimal weights, these “token whales” or “delegate whales” may have too much weight compared to the optimal level and may largely determine decisions"
"delegation is somewhat lumpy, leading some delegates to amass considerable voting power, consistent with theoretical concerns about over-delegation."
"Simply put, giving all the weight to a small group of gurus increases the chance of an incorrect majority vote, assuming that gurus have a less than perfect accuracy."
"In the face of a possible auction, neither whales or founders can secure on-going control."
"“Analyzing voting power in decentralized governance: Who controls DAOs?”"
"when proposal flow grows faster than broad participation can keep up, effective control may drift toward a smaller set of highly active participants."
"decentralization gains do not persist indefinitely once governance workload becomes sufficiently high, and load-based measures show especially clear evidence of a transition toward more concentrated realized control."
"when proposal flow grows faster than broad participation can keep up, effective control may drift toward a smaller set of highly active participants."
"The findings show that reputation and share-based models can mitigate the centralization seen in token-based systems"
"Unequal Voting Power: The results reveal how reputation and share-based governance systems manage to avoid the high degrees of centralization of the voting power in token-based governance."
"The results show that token-based protocol DAOs exhibit significantly higher inequality in voting power distribution compared to DAOhaus and DAOstack. The median Gini coefficients for these three groups are 0.98, 0.75, and 0.46, respectively."
"In other words, a small but changing minority of members is in full control of these DAOs."
"Traditional token governance should be avoided due to its tendency to favour highly centralization voting power distributions."
"LowvoterparticipationincreasessecurityrisksinDAOs, underminesminorityrepresentation, andchallengesthecorerationalefordecentralization."
"Forexample,inUniswap,just7.5%ofgovernancetokenscoulddecideallproposals."
"Ifalargemajorityofvotingweightiscastinfavourofanoutcome,memberswithlittlevotingpowermaynotvoteagainst it,asitwouldhavelittleimpact. Thiscangivethefalseimpressionthatnotjustthemajorityofweightbutalsothemajorityofvotersfavouranoutcome."
"Badgeholders are expected to represent the broader interests of the community while maintaining impartiality through a strict code of conduct, including conflict of interest protocols."
"Optimism seeks to balance governance power, ensuring that financial influence does not overshadow community input."
"one person—or more precisely, a pseudonymous wallet holding a badgeholder token—equals one vote, with equal voting power for all voters."
"Diversification None (37) Some (7) Very (28)"
"Literature reviews further reveal opportunities and hurdles in implementing digital democracy within DAOs, particularly around power distribution and participatory mechanisms"
"Ethereum’s liquid staking issue allowed passive stakers to capture rewards without directly contributing to network security or governance, leading to the concentration of influence among large staking providers."
"this governance carries potential risks, including reduced clarity on who truly “votes” due to the concentration of economic power among large stakeholders"
"the user-activated-soft-fork voting mechanism poses the risk of major economic actors unidirectionally changing Bitcoin"
"Blackrock is by now one of the largest Bitcoin holders"
"the user-activated-soft-fork voting mechanism poses the risk of major economic actors unidirectionally changing Bitcoin."
"Blackrock is by now one of the largest Bitcoin holders. In their service agreement for their iShares trust, they specify that it is up to them to decide which Bitcoin chain will function as underlying to their ETFs in case of a Fork."
"there is a significant risk that such major economic actors support values that do not align with the larger community of Bitcoin holders."
"However, this also fueled a centralisation of power amongst just a few delegates"
"Plutocratic governance mechanisms continue to dominate the DAO space"
"DAOs exhibit an inherent asymmetry of power and information, particularly favoring software developers"
"Important governance changes, implemented through improvement proposals, are often controlled by a small group of core developers"
"Optimism seeks to balance governance power, ensuring that financial influence does not overshadow community input. In Retroactive Project Funding, one person—or more precisely, a pseudonymous wallet holding a badgeholder token—equals one vote, with equal voting power for all voters."
"Badgeholders are expected to represent the broader interests of the community while maintaining impartiality through a strict code of conduct, including conflict of interest protocols."
"Power asymmetries can arise when those with more tokens (and, by extension, more financial influence) dominate the voting outcomes [13]."
"A central critique of DAO governance is the concentration of voting power among a small elite of token holders, which undermines decentralization and participatory legitimacy"
"may mitigate free-rider problems, but inadvertently concentrate power among capital-intensive actors"
"Large venture capital funds and hedge funds that acquire governance tokens often demand governance privileges such as board representation or treasury veto power, replicating traditional corporate governance hierarchies"
"Many DAOs claim to be decentralized, but in practice, function under de facto oligarchies because of token concentration"
"They observe that, while many DeFi projects are marketed as decentralized, significant control over these protocols frequently resides with certain key actors, particularly the developers who design and manage the code."
"Blockchain-based governance is frequently praised for its egalitarian potential, but it often concentrates power among a few key actors—such as developers, miners, and tech entrepreneurs—who influence decision-making"
"DAOs managed by AI must rely on legal workarounds, such as delegating activities to developers or DAO members, which contrasts with the principle of decentralization and increases the risk of manipulation or conflicts of interest"
"To mitigate the risk of plutocracy, the system supports advanced voting models such as quadratic voting and delegated voting, allowing for more equitable influence distribution."
"Security-centric patterns such as multi-signature wallets (e.g., Gnosis Safe) and time-lock contracts introduce institutional safeguards. These mechanisms enforce deliberation windows and multi-party consensus for high-impact decisions, mitigating risks of governance capture or impulsive proposals."
"Capture Resistance No single party can unilaterally control, censor, halt, or otherwise extract rent from Optimism"
"Wealth amasses tokens, buys legislative power, corrupts decision making. A voting system that allows voters to buy more votes converges to plutocracy"
"Ongweso, E.J.: Democratic DAO Suffers Coup, New Leader Steals Everything."
"Common pain points include: • Committees that drift or concentrate power. • Social pressure that favors incumbents over fresh ideas."
"However, on the flip side, DAO development faces inevitable challenges, including issues of centralization, high costs, unsustainable tokenization mechanisms, and immature supporting technologies"
"The quadratic strategy weakens the significant influence of rich stakeholders, diminishing the gap across different individuals."
"highly active groups of participants tend to accumulate major shares of tokens... hence breaching the decentralization due to the concentration of e-voting power."
"Feichtinger et al. [8] conduct an empirical study on 21 DAOs to explore the hidden problems, including high centralization"
"Daian et al. [71] propose a potential attack form called Dark DAO, which means a group of members form a decentralized cartel and can opaquely manipulate (e.g., buy) on-chain votes."
"The concentration of governance tokens among a few influential individuals often undermines the decentralized ethos of DAOs, leading to a disparity in decision-making power"
"it is important to explore how to prevent power centralization, ensure fair voting power distribution, balance stakeholder influence"
"Influential blockholders and majority voters can centralize power and manipulate outcomes, raising questions about the true nature of decentralization in DAOs"
"there is a growing need on exploring new mechanisms to prevent power concentration and enhance security"
"In terms of Documentation, inadequate or unclear documentation from developers may prevent members from effectively participating, increasing the risk of undetected governance attacks or enabling a small group of members to dominate the process."
"For the Governance Contract, 176 DAOs allow external entities to control their governance contracts, while one DAO permits developers to arbitrarily change the contract’s logic."
"the developer could manipulate the process by adjusting the voting delay to ensure only they can vote, or by setting an unreasonably high proposal threshold to cancel any unwanted proposals."
"Developers should be required to disclose all privileged addresses to their members or mandate that all privileged functions be controlled by the governance contract."
"The tokenization model turns users into decentralized policymakers... However, models like token-weighted voting can paradoxically lead to centralization and plutocracy."
"those with more power in the community may experience higher pressure because of frequent rounds of negotiations"
"address hidden power dynamics in CBPP communities"
"they do not typically occur in scenarios of equitable power dynamics"
"Despite democratic aspirations, the projects exhibited power imbalances, with leadership eventually consolidating into a form of centralized decision-making"
"most DAOs have replicated familiar patterns of exclusion: technocratic interfaces, plutocratic voting mechanisms, and rigid governance protocols that often concentrate rather than distribute power"
"Participation Token-based plutocracy ⁃Role-based governance: decouples voting power from capital ownership"
"⁃Leadership without control principle: shifts emphasis from centralized token-holding to distributed agency and collective stewardship ⁃Safety rails: embedded protocols ensure accountability and mitigate power concentration risks"
"it became apparent that those interested in controlling the votes and inducing the governance to work the way they wanted could easily do this by buying enough tokens. This began to happen, and such participants were called whales."
"The whales were unrelenting and created phantom participants or used proxies to increase their participation power."
"We show that security structure influences both the conditions under which a control change takes place and the terms on which it occurs."
"An extreme case of this is where votes are assigned no dividend rights."
"one share/one vote protects shareholder value better than any other security structure."
"As a result, buyers who will tend to lower the market value of the firm, and are attempting to purchase the firm for their own (private) benefit, are more likely to be screened out."
"Conversely, if a corporation had a suboptimal voting/security structure an investment bank could profitably repackage the securities and votes to be in the form of one share/one vote."
"We find that, rather than democratizing decision-making, a small number, often three or fewer, of entities exert control over most decisions."
"The average voting power of the largest address is sizable, ranging from 39% (Infrastructure) to 45% (DeFi). For the top three voting addresses, power ranges from 67% to 71%, and the top three voters cast the majority of votes for more than 69% of proposals."
"concerns mount over the potential for influential token holders—like early blockchain entrepreneurs, tech giants, and wealthy venture capitalists—to wield significant power in the DAO voting process. This calls into question the system’s fairness and leads to a lingering inquiry: is the DAO genuinely decentralized, or is it merely a facade for a new form of plutocracy?"
"Consequently, decision-making power within DAOs tends to be concentrated in the among a select few large token holders, who are typically the founders, early investors, and major venture capitalists."
"The voting power within DAOs is firmly held by big token holders, with the vast majority of voting activities being determined by a maximum of four large token holders."
"Collectively, 66% of voting outcomes could be dictated by a group of four or fewer voters."
"the leading four voters exhibited a remarkable level of agreement in their voting patterns"
"Collectively, 66% of voting outcomes could be dictated by a group of four or fewer voters."
"the top four voters persistently voted in a unified manner for every proposal. In some DAOs, these same four voters consistently ranked among the top voters across all proposals, indicating that a small contingent of three to four individuals held substantial influence over the majority of decision outcomes within the DAO."
"large token holders have single-handedly overturned the supermajority’s stance, thereby contradicting the consensus of the wider community."
"DAO decision-making power is concentrated among a few large token holders, with one large voter capable of swaying 35% of all voting outcomes. In total, 66% of voting outcomes could be influenced by four or fewer voters."
"it might be necessary to impose a fiduciary duty on these individuals. Such obligations could entail disclosing any conflicts of interest"
"Democratic Capture: Citizens cast votes to elect representatives, who in turn raise money from a donor class... when the moneyed donor class wields more influence than the voting electorate, politics risks “capture”"
"At the extreme, when money buys votes... one-person, one-vote and one-share, one-vote—collapse to one-dollar, one-vote."
"This superlinear cost (n² tokens for n votes) makes it significantly more expensive for insiders to consolidate control compared to linear systems like token-voting (n tokens, n votes) or shareholder-voting (n shares, n votes)."
"Unlike one-token, one-vote or one-share, one-vote systems, which are vulnerable to opportunistic “whales” who amass influence, manipulate governance, and exit with a “dump,” community currencies lock whales into the ecosystem, aligning their incentives with the long-term health of the community."
"In plural voting, the lack of information about a participants’ voting history undermines a briber’s ability to accurately price bribes, even if they know all affiliations."
"Community currencies mitigate empty voting by tying voting power to irrevocable stake."
"Democratic capture occurs when decision-making is controlled by a small group prioritizing their own interests over the broader electorate—pursuing “private benefits at diffuse public costs.”"
"Unlike conventional systems—where dollars directly buy both attention and influence in a linear, transactional manner—PCARE requires that those seeking to influence governance irrevocably stake their interests in the community, making influence accountable rather than a commodity for sale."
"Under plural voting, actors with the same composition are treated as a single entity and receive a discount."
"The governance crisis of the digital age is not simply “money buying votes,” but rather money buying attention, and on the cheap... both systems instead succumbing to “overreach” and “capture.”"
"Even if voting persists in form—whether one-person, one-vote democracy or one-share, one-vote corporate governance—one-dollar, one-vote prevails in substance."
"Without subsidiarity, community currencies risk being swallowed by global surveillance AIs (and their global currencies)."
"many DAOs still default to token-based voting, concentrating power among token holders and exposing governance to speculative financial capture... By decoupling influence from marketable tokens, SBTs aim to curb speculative capture and foster pluralistic, trust-based coordination."
"core team members may face personal incentives that are misaligned with those of the broader community."
"The most successful DAOs achieve this by fostering broad participation, implementing robust security measures, and minimizing excessive privileges or entrenchment for core developers."
"DAOs promise horizontal and democratic decision-making."
"In the United States, the creation of control parties by the mechanism can lead to the claim that the 'efforts of others' branch of the Howey test is met because, in the words of Howey, the control party’s efforts are the 'undeniably significant ones,' essential to overall success and profitability."
"The intention of DAOs is to circumvent central authorities and hierarchical structures that are prevalent in traditional organizations, and democratize the decision-making process by distributing voting rights through so-called governance tokens to community members."
"Notably, variations in the largest-holder percentage did not consistently suppress network participation. This finding complicates assumptions about centralisation effects, suggesting that concentrated capital, when coupled with effective delegation or automation, may coexist with active governance."
"there is a danger of over-delegation, the concentration of excessive voting power in the hands of one or a few delegates."
"Then all voting rights will be delegated to the single high-competence voter, and the probability of a correct collective decision will plummet to 0.731 from the majority vote outcome of 0.997."
"Tsoukalas and Falk 2020 investigate the effectiveness of decentralized platforms witch use token-weighted-voting and crowdsource information from users. They find that token-weighting generally discourages truthful voting."
"the distribution of members often adheres to the Pareto Principle (the 80-20 rule [35]), indicating a concentration that could lead to unintended centralization."
"some DAOs experience centralized participation patterns, which could hinder the democratic potential of decentralized organizations."
"a potential threat of implicit centralization caused by oligopolistic blockchain organizations that have taken the first-mover advantages."
"early DAO implementations often replicated firm-like hierarchies and unresolved power asymmetries under the guise of decentralization"
"Research or frameworks for handling cases where a malicious and determined actor seeks to influence the platform for their own gains should be funded."
"the majority of voting power is concentrated in the hands of a small number of addresses, we rarely observe these powerful entities overturning a vote by choosing a different outcome than that of the overall community"
"It presents a particular narrative of how Web3 should operate (e.g. resistance to corporate power but not founder power)."
"Levels 1-4 - high influence → decision making rights should be restricted to trusted parties and competition should be incentivized among these parties to balance power"
"Those who control execution infrastructure exercise discretion without bearing proportional responsibility."
"This leads to a need for checks on the special authority exercised by these specially empowered decisionmakers generally"
"We’ve replaced a human duopoly with an algorithmic oligopoly that encourages proposers to spend their time massaging their proposals for their AI judges."
"The surety deposit addresses the danger that the bidder will engage in value destruction after gaining control of the DAO."
"Token concentration Quadratic voting; identity-based or membership-weighted tokens"
"If we fail to allow for dependencies by continuing to weight the set of less competent voters as if they had independent competencies, the outcome is even worse. We will incorrectly weight the 3000 voters three hundred times more than the single more competent voter."
"How much does a governance machine created through independent transfer delegation by whales shade decentralization? Much depends on whether the delegates are truly independent from the whales."
"A major concern for such decentralized organizations is the risk of “majority attacks,” where a group holding the majority of voting rights decide to expropriate the collective resources. To mitigate this, many DAOs allow members to exit before the decision takes effect, ensuring they receive their share of the joint assets upon departure."
"22. Steven P Lalley and E Glen Weyl. Quadratic voting: How mechanism design can radicalize democracy... 14. Nicola Dimitri. Quadratic voting in blockchain governance."
"Governance Voting Power: We define how voting power is distributed in a DAO... It can either be the Number of Tokens Owned, Number of Tokens Staked, or Per Individual."
"Governance Voting Limits: A DAO can also impose restrictions on the voting power of a single DAO member... None and Per Address"
"For-profit platforms represent a particular type of solution for how to alleviate attention overload in communities as they grow in scale and diversity—by enabling users to largely outsource their governance duties and attention management to the platform, at the cost of degrading user agency and autonomy."
"voting delegation, as in GitcoinDAO, is influenced by distributions of social capital among members. This process does not, however, attempt to make that distribution representative demographically, geographically, or in terms of various skill-sets."
"In a DAO, decision-making authority resides collectively with token holders in proportion to their governance token holdings."
"Decreasing legitimacy via brute force This may be via hard power: Someone has enough voting power to unilaterally impose their will on the DAO"
"Rewards amplify Signals core design: only positive support, opportunity cost via locks, and time-weighted influence that lets smaller holders compete."
"To avoid centralization, DAOs could accordingly prioritize diversity, decentralize decision-making, avoid concentration of assets, embrace transparency, and foster community."
"In September 2018, the firm Andreessen Horowitz acquired 6% of the total MKR supply... In December 2019, Dragonfly Capital Partners and Paradigm collectively purchased $27.5 million of MKR... to influence the decentralized governance of the Maker Protocol."
"Fredrik Ygge and Hans Akkermans. Decentralized markets versus central control: A comparative study. Journal of artificial intelligence research, 11:301–333, 1999."
"Our analysis has not, however, dealt with the issue of a change in the security/voting structure by an old company which has a one share/one vote charter. Nevertheless, we would view such a change with suspicion. If such a corporation changes its structure so that incumbent management is entrenched and isolated from the market for corporate control, then our result that one share/one vote is generally in security holders' interest, and the fact that managerial entrenchment is in the managers' self interest, leads us to believe that it is possible that security holders will be harmed."
2
0
Increase meaningful governance participation, onboarding, inclusion, and quorum reliability while reducing voter fatigue and barriers to entry
0.97
Evidence 138 122 13 54
"“there's a lot of technical challenges in the way our platforms are built today. Just onboarding and using, the tools we have are are not always easy.”"
"“If there's a lack of incentive, if there's no funding, then it's really hard to get people to continuously participate in voting, when there's a friction of having to do multiple transactions.”"
"“the admins have to put a lot more effort to get people to participate, which then increases their burnout... So this creates that kind of vicious cycle.”"
"“there are existing tools like Karma, but there's friction with having to use markdown and these tedious formats... especially for people that are mostly mobile based.”"
"“it hasn't really been... mobile first driven, friendly UX experience for people to do impact.”"
"“Greengrass is very accessible because it's just a browser app... download it as a PWA. It works fully offline.”"
""There are several problems related to governance participation in the space. First is a complete disregard for governance frameworks in protocols and DAOs. Governance starting to seem unnecessary.""
""Low participation rate in governance proposals and discussion.""
""Lack of interest from the 'right' audiences.""
""For example, a marketing or a proposal should have marketing experts discussing and trying to push that particular decision forward.""
""Most DAOs have threshold in which only participation from the core team is enough to pass proposals, so there are usually no need to involve the right audience fit.""
""the proposer needs to be technical enough to compile call data generally, kinda creates a boundary or gate or or a hurdle for for the community to, participate""
""it's just really, really slow. It slows down the process""
""there's a number of gaps in how identity works in web three, and it impacts DAOs both from, like, an admin and management perspective""
""somebody somewhere has to do that binding and that mapping, in a technical way that's elegant and, like, low friction for the user, you know, and and and we just don't have it""
""most folks agree that, like, private voting would be great""
""there's two problems with private voting, and that is, you know, the the UX and the friction associated with it""
"“Loss of interest/confidence in DAOs or governance as it is today.”"
"“Number of delegates are not increasing.”"
"“Number of proposals are going down each quarter.”"
"“The problem is not that information is unavailable. It is that governance data is fragmented across forums, Snapshot votes, onchain transactions, Discord discussions, and offchain signaling platforms.”"
""Coverage quickly becomes shallow rather than substantive.""
""The goal is not automation for its own sake, but to reduce cognitive overhead while increasing analytical depth for delegates and ecosystem builders.""
""Delegates and governance contributors operating across multiple DAOs often experience cognitive overload.""
""The result is decision fatigue.""
""Contributors either default to heuristics such as following large delegates, abstaining due to insufficient synthesis time, or voting with partial context.""
""Over time, this creates burnout and disengagement.""
""Participation becomes narrower. Governance becomes more concentrated among those with the time or resources to monitor full-time.""
""also as a way to not have the issues of, like, people, having the bandwidth to keep up with all the different governance proposals""
""low engagement, complexity, and token weighted voting often result in influence concentrating among a small group of highly engaged or well capitalized actors.""
"“governance infrastructure providers such as Tally, Snapshot, Boardroom, and Agora are working on improving usability, transparency, and delegation mechanisms.”"
""Ideally, those who have the most skin in the game should be participating in governance.""
""a lot of projects building in an ecosystem ... don't have the time/desire to participate in governance, even though they are typically the once who are most impacted by governance outcomes""
""This group requires a custom onboarding for each case to get them both set up and participating.""
""Design airdrops to target partners & builders in ecosystem to help seed voting power for these groups in your governance system.""
""Delegate tagging system on governance interface ... tags all Chains, Apps, Technical Partners, Security Council members & Guardians. There is also an 'active' tag""
""Delegation pool programs: Allocate a portion of treasury to a delegation pool program that delegates X amount of voting power""
""Delegate onboarding programs/tests could be useful to ensure delegates understand exactly what your governance governs, understand priorities and strategy.""
"“people are not engaged enough with governance as a topic. It isn't inspiring for most people in the current formats”"
"“its such a heavy topic, its reading-heavy”"
"“Low participation rates and also a lot of people asking ‘Why do I need to think about governance in the first place and how does it affect me?’”"
"“People who contribute to governance should get compensated for their time.”"
"“it should be as easy as connecting your wallet and getting paid for actions you carry out (like voting on DAO proposals)”"
"“when people saw they were making money from it, that it was sustainable, the participation flew through the roof.”"
""In most DAOs, it's really hard to see participants in the DAO, who are not part of a governance provider body.""
""if you look at the numbers of people voting and... the people present in the governance setup, you find out that they are usually more familiar faces""
""the same set of people per se are usually present in different ecosystems""
""too many decisions needing to be taken by too many actors, leads to inertia/discouragement""
""lowering participation rates over time, paralyzed projects, the coordination required to reach quorum.. all observed in the Token Engineering Commons, which I researched from 2021-2023""
""Aragon is working on interesting approaches - basically, subsidiarity, delegation of decisions""
"In many token DAOs, there are too many proposals and too many procedural votes. This leads to voter fatigue / apathy."
"many DAOs have created standardized governance and voting cycles so that token holders and delegates do not need be aware of potential votes at all times."
"They can tune out most of the time and then schedule some time to participate regularly."
"a DAO which seeks to emulate an online corporation may reduce voter fatigue by electing managers for each department and then delegating responsibility for certain areas to those managers."
"if a DAO is maximally cypherpunk, then it may seek to reduce voter fatigue by eliminating specific proposals altogether and instead hosting one vote per quarter."
"“Definitely issues with low participation rates.”"
"Voter apathy / rational ignorance leading to recentralization of decision-making, arguably driven by overly-complicated voting experiences"
"“Persistent voter apathy despite years of mechanism iteration”"
""Creo que la governance apathy no es algo contra lo que luchar... Es algo con lo que hay que contar a la hora de diseñar los incentivos en las DAOs""
""en todas las DAOs apenas votan 20-30 personas como mucho. Si quitas a los delegados pagados, muchas de esas DAOs no tendrian nadie para votar.""
""Para la governance apathy, mas contenido educativo-onboarding y mejor diseño de incentivos""
""en Anode (antes Stablelab), donde hicimos un curso sobre Scroll Governance en el que hubo bastante participacion y la gente salio contenta""
""abogaria por mas DAOs con newsletters/forum posts con resumenes de gobernanza""
"“these so called committees becoming a centralising force and very rarely create processes or procedures that involve the broader token holder base.”"
"“High Switching Costs for New Contributors”"
"“If DAOs are supposed to be a democratising force. Our decision system should be broad and inclusive not centralising.”"
"This also leads to low participation rates, proposals that only those with concentrated incentives understand, and non-representative proposals passing because of inattention or disinterest."
"When DAOs do try to decentralize, there is low participation because of the time required to research proposals and the lack of incentive to do so."
"People with low token balances don't bother voting because they know they can't affect the outcome."
"The process for submitting a proposal is too hard to understand, preventing new participation."
"I created Updraft (https://updraft.fund) to make it easy for anyone to create or join an idea (proposal) and to potentially get paid just for the act of signaling."
"Indicated above - impact loss of trust and low participation"
"Priority setting, education and standard outside a template on proposals."
"Small group to review proposals and push back to make it clearer and something someone outside of crypto wpuld see and make sense."
""At just 3-4%, the ENS DAO's active voter engagement is far below the industry average of 25%""
""a delegate with a minimal number of delegated votes (e.g., 9 votes) holds the same inherent responsibility as a delegate commanding substantial voting power""
"We are seeing challenges with low voter turnout and lack of participation on governance."
"A small percentage of community members voting on proposals at any time"
"AI support such as NLPs to reduce the cognitive load of voters."
"“one big challenge is what to do in order to keep a community engaged without the need for extrinsic incentives.”"
"“they also don't seem to be able to affect projects meaningfully, so they leave.”"
"“This is due to concentration of voting power, but also lack of participation from other potential actors.”"
"“There's a lack of compensation, since gov is typically voluntary work.”"
"“In terms of increasing the pool of delegates, there's e.g. delegate programs to train people how to contribute, compensation for delegates, focusing on delegates strategy wise.”"
"“an org can invest in marketing for token holders to delegate, good governance ui/ux / platforms, incentivizing delegators.”"
"“There's also lot of non-financial things you can do to increase community interest”"
"“One of the biggest issues I see in many DAOs (including RARI DAO) is that the Foundation is taking on 'DAO operations' work - i..e. management of the treasury without any visibility or current transparency of the spend.”"
"“some of these DAOs do have an auto-abstain wallet for all proposals to pass quorum, but using it like a permanent solution, rather than a temporary one.”"
"“Low participation rate has more to do with the Foundations reducing operational funds for DIPs and less delegates become eligible to receive DIP rewards”"
"“not everyone checks to vote and so its never clear if there is quorum, if we should wait, its a huge bottleneck”"
"“It didn't reach quorum, but people were unsure how to vote cause they weren't sure what was the best way to spend the money”"
"“people not having the skills on how to make a proposal (though i guess there could be a format)”"
"“limited time to review and vote on a proposal”"
"“it would be interesting if an online platform could ping you / text you when there is a vote that is required”"
"“i think a built-in format for proposals could be useful.”"
"“Getting clearer on how to participate. For instance quests for newcommers, gauges for low-intent token holders”"
"“reputation systems where leveling up gets engaged members a seat at the table where proposals are made.”"
"“We see participation fatigue, concentration of informal power among the ‘mechanism literate,’ and recurring cycles of crisis-driven governance changes.”"
"“Protocols like Lido and others [are] experimenting with dual or layered governance after discovering that pure token voting produced apathy, whale dominance, and difficulty scaling complex technical decisions.”"
"“Direct token governance failed because people can't be expected to know domain specific things or have availability to be present enough to make well informed decisions.”"
"“In one DAO the ability to reach quorum was lost because so many ppl had delegated to a single member and that member had their wallet compromised so they could no longer vote with it.”"
"“the ppl that had delegated were so disconnected that they never came back to update their delegation.”"
"“It feels like the only solution is just robust organizational structure that establishes a cultural awareness of the problem and reduces barriers to staying engaged.”"
"“Es difícil para una persona independiente poder generar un ingreso constante trabajando en gobernanza. O te sumas a un equipo (que termina siendo trabajar para una empresa) o vives en la incertidumbre.”"
"“Scroll está empezado a pilotear con un modelo de 'delegado verificado' que podría permitir que un delegado individual pueda recibir retribución de manera más consistente.”"
"“en otros contribuidores activos deberíamos integrar a los delegados independientes.”"
""I think the UI UX could be better with the crypto and everything and make make it seem like they're not even using crypto in the background""
""The technical infrastructure exists: we have on-chain voting records, forum archives, Discord logs, GitHub repos. The raw data is technically stored. The problem is that this data is cognitively inaccessible without structured interpretation.""
""What's missing is the organizational practice layer - no one is responsible for synthesis, there are no standardized processes for outcome reviews or retrospectives, and there's no metadata framework that makes historical decisions legible to new participants.""
""People would rather just delegate, but that then opens up a whole new range of questions on how to facilitate that, or that it concentrates power that undermines the whole governance structure""
"“There is generally a burst of excitement at the start of an initiative that involves voting on proposals, that quickly tapers off.”"
"“I've just seen multiple instances where voting participation tapers off.”"
"“To address fatigue I think the emergence of locally running agents could be interesting, you then how to design for a way for those agents to adhere to preferences.”"
"“Token voting is a dead end given that no one wants to vote”"
"“Other problems are voter fatigue, lack of incentives and unpaid work for govrnance workerss”"
"“Voter participation should be rewarded, inflation of a governance tokens should be directed to good governance participants”"
""the main task of governance is voting, but voting partiication is low""
""low votable supply relative to total supply, issues meeting quorum in some ecosystems.""
""it's also important to work on a healthy culture along side these to ensure that the DAO is attracting people who are willing to do the work""
""Create an AI agent that helps groups define the best decision-making mechanism for the specific situation""
""Personal governance assistants for decision fatigue""
"broken contributor economies and fragmentation expand voter apathy across all stakeholders - delegates aside - decision fatigue worsens it and plutocracy"
""Voting Fatigue - Noise - impact""
"Decision fatigue compounds voter apathy"
"No clear pathways to participation for token holders."
"No pathways for new contributors to make a meaningful impact"
"Outside of delegates, most stakeholders have no incentive beyond impact - and outside the top 10-20 VP holders, impact isn't real."
""too much cognitive overload""
"Fragmented governance stacks amplify every other problem friction for existing participants and entry barriers to new ones."
"'Not: same bubble, new tools. But: new audiences, existing primitives.'"
""Emotional expectation setting from the start""
"Better contributor economies creating organic demand to hold governance tokens"
"Clear pathways for token holders to particpate, gated by ability"
"The ability to delegate towards interests rather than people"
"IRL spaces to learn about DAO / onboarding."
"Reduce voting to once a year"
"Fund initiatives to template and standardize categories and presentation formats on Eth Magicians to improve process clarity and onboarding."
"Fund efforts focused on improving communication and clarity around when the Ethereum community should engage and provide feedback on protocol upgrades."
"Content such as interviews or discussions explaining the development and use of platform-specific improvement proposal processes like Kickback's KIP should be funded to educate the community."
"Agenda setting | prioritizing, framing, identifying dimensions and stakeholders ... Eliciting | self-reflecting on values, lived experience, and acquired knowledge ... Learning | welcoming evidence or others’ lived experience"
"all models suffer from low member engagement, suggesting an over reliance on direct democracy"
"DAOs are inherently susceptible to low voter participation, contradicting their decentralized ethos by potentially centralizing decision-making power"
"The architecture supports decentralization, broad participation, and differential experimentation... Field workshops demonstrated that these mechanisms maintain liveness under realistic network conditions and allow smaller holders to influence outcomes by committing for longer periods"
"Uniswap’s governance experimented with explicitly compensating delegates to improve participation quality and sustain long-term attention — basically admitting that “free governance” is often fake governance."
"ENS uses working groups with stewards and defined processes so the DAO doesn’t need to vote on every operational detail."
"Scalable Participation: Need to engage 40+ delegates meaningfully without overwhelming their attention"
"Spanish-speaking delegates’ ability to speak to Harmonica in native language revealed previously hidden perspectives. This wasn’t just translation but genuine accessibility, suggesting significant latent insight for delegates whose native language isn’t English."
"The governance team personally DM’ed every delegate to ensure participation. This high-touch approach is intentional, not a scaling failure:"
"Short. The constitution should be short and focused. Do not overspecify definitions, rules, and processes. As a rule of thumb, imagine a document that more than 50% of your community would actually read."
"Others (notably, the ones following the 1Hive covenant template) are notably “plain,” that is, written in a register that is relatively unmarked by any specialized function. This has the effect of feeling the most inclusive, which perhaps explains why it has been emulated repeatedly."
"For example, the 1Hive constitutions promise, quite prominently, the “right to a harassment-free experience”."
"The number of subjective decisions voters are asked to make should be reduced."
"🤚 Establish a talent pipeline + scalable onboarding flows."
"Expanding participation does not always build stronger governance. When too many decisions compete for limited attention, organizations hit a ceiling: governance overload that erodes focus, engagement, and accountability."
"And what we have seen in this governance overload context is that it is a lot... there was this governance overload and this constant need or desire or pain point to find a way to lighten that load."
"Without that party, we would not meet a quorum."
"many DAO voting rules including minimum participation requirements to validate a particular vote"
"Participating in governance should not require spending hours reading forum posts and navigating complex bureaucracy. Being a governance participant should not be a full time, or part time, job."
"Fortunately, human nature is not as grim as Hardin paints it. Contrary to Hardin’s pessimistic view, Nobel laureate Elinor Ostrom’s groundbreaking research revealed that local communities can sustainably manage shared resources through effective self-governance."
"Multilingual support (English, Portuguese, Spanish, Bahasa, and Swahili) to enable inclusive communication"
"Multilingual support (English, Portuguese, Spanish, Bahasa, and Swahili) to enable inclusive communication"
"the systemic barriers that prevent youth from the Global Majority from effectively participating in international climate negotiations"
"This is the promise of AI voters: technology as the great democratizer empowering newly informed participants. Direct democracy’s dream without its cognitive costs."
"Majeur also further improves on existing DAOs by adding novel membership incentives, like voting bonuses, to help solve for voter apathy and the lack of predictable rewards for good operators."
"As part of their intake process, Anou ensures its basic socioeconomic tenets are well-understood"
"The mean and average number of times a voter has participated in proposals reveal a very low participation rate, with voters often participating in less than 1% of proposals, and a very low voter turnout."
"difficult accessibility of the governance platforms"
"This commitment to participatory governance is of the utmost importance in order to preserve user involvement, engagement, and confidence."
"the practical implication of such a principle should go hand-in-hand with a large participation of the members of communities to ensure a result that represents the community. But this does not seem to be the case in DAOs"
"Maker Governance Polls do not attract much participation and MKR held by the dominant voters may theoretically lead to collusion in some polls."
"Compared with the rapidly increasing number of users, voters are centralized in a small group"
"For some polls, no more than ten voters will participate in decision making. The finding implies that not all polls have large voting participation. Compared to the rapid growth of Maker users, voters are a small group."
"After tracking the MKR balance of all MKR holders on Ethereum blockchain, we find that a significant portion of MKR holders choose to be passive holders rather than actively engaging in governance."
"On average, in both governance systems less than 10% of total tokens (or 15% of circulating tokens) participate in votes on proposals."
"We find that only a very small number of delegates actually participate in voting ... For Compound, the number has been falling and the average is currently around 20, while it has lately been less than 100 for Uniswap."
"For protocols with token-based governance models, the lower bound number of addresses needed to reach a majority, i.e., >50%, may be of special interest. A relatively low threshold can indicate a higher likelihood of collusion and centralized decision making."
"Municipalities should establish inclusive digital participation tools, such as online voting, suggestion platforms, and collaborative forums, to enable meaningful input from citizens, non-governmental organizations (NGOs), and local businesses."
"The association seeks to encourage active participation in discussions and decision-making – ideally through digital means."
"addresses with dust values, where participating in governance is economically not feasible."
"voters are called to vote on an extremely high number of issues, rendering the accurate expression of their preferences extremely challenging... voters will inevitably have a confident opinion only for a small number of issues"
"A well-documented possible remedy to this situation is to allow for proxy voting"
"the distribution of governance tokens is highly concentrated [6,20], and the exercise of voting rights is very low [5]."
"For RQ2, we investigate whether the DAO offers adequate guidance to its members for participating in the governance process, thereby motivating member engagement in governance process."
"The documentation should provide guidelines on how blockchain users can become DAO members and participate in governance, as well as the participation rights in the governance process."
"Failing to explain voting power could discourage member participation in voting or, conversely, enable a member to accumulate excessive voting power, potentially allowing him to arbitrarily control the result of voting."
"This decentralized framework empowers a diverse set of stakeholders, including governments, developers, ethicists, auditors, civil society groups, and end-users, to actively contribute to regulatory decision-making."
"To enhance participation and mitigate free-riding, Governor Bravo, in combination with the respective Governance token smart contract of the DAO, allows token holders to delegate their voting power to others."
"Snapshot is a decentralized voting system that eliminates the need for voters to pay Ethereum gas fees, which can be volatile and costly, thereby encouraging broader participation."
"On-chain Vote 2,500,000 Simple majority 40,000,000 affirmative votes 7"
"many DAOs face sustainability challenges linked to limited user participation, concentrated voting power, and technical design constraints"
"inclusive governance structures, more equitable resource allocation, and user-friendly voting mechanisms can significantly boost engagement and decentralisation"
"Our findings confirm that persistent low participation remains a core vulnerability. This aligns with prior studies indicating that under 10% voter turnout can lead to oligarchic outcomes [4]."
"it may be rational for these potential voters to be in this state of ignorance. Low participation can be optimal whether it is terms of percentage of voting rights exercised or in terms of the proportion of voters participating at least in part."
"“What Happens When Anyone Can Be Your Representative? Studying the Use of Liquid Democracy for High-Stakes Decisions in Online Platforms”"
"Because decentralized governance is monitor-intensive, rising proposal flow may eventually outpace the capacity of broad-based participation."
"The main result is a statistically significant decline in the marginal responsiveness of active participation once proposal flow crosses this threshold."
"active participation rises with proposal activity up to an interior breakpoint and then becomes substantially less responsive. This pattern is consistent with a monitoring-capacity constraint: as proposal flow increases, the burden of following, evaluating, and voting on governance decisions begins to outpace the capacity of dispersed participants."
"though all models suffer from low member engagement, suggesting an overreliance on direct democracy"
"The analysis shows low voter participation across governance models and supports the hypothesis that this is not due to the cost and complexity of on-chain voting but an excessive use of direct democracy."
"The overwhelming majority of members in all DAOs participated in fewer than 20% of proposals. Only a small fraction of members reached higher participation levels, and participation above 60% is rare across all cases."
"Low Participation: Participation in governance decisions is low, so members should instead elect decision-makers to conduct governance for them."
"ToolslikeSnapshotwereintroducedtoeliminategascostsandsimplifyparticipation;however,theanalysisshowsthatSnapshotvotingalsosuffersfromlowturnoutintheDAOsstudied. Thischallengestheassumptionthatcostisthemainbarrier."
"While the causes of low voter participation remain somewhat unclear, the data tentatively supports the hypothesis that a combination of centralization and direct democracy—rather than cost—is the main driver."
"Moreover, frequentuncontroversialdecision-makingcan causevoterfatigueandfacilitatelowparticipation; ifvotersareconstantlyconfrontedwithsmall,uncontroversial decisions,theymayhavelesstimeandpatiencewhenmoreimportantproposalsarise."
"Entry Barriers Ownership (58) Ownership + Invitation (2) Staking (6) Application (5)"
"participants frequently find that the enthusiasm for shared authority and accountability come into tension with the limitations of their own attention to engage in those processes fully"
"people with less access to free time and educational preparation, for instance, appear less likely to attend meetings, vote, and devote the attention that effective political engagement requires"
"a major problem in DAOs is that ‘governance is overwhelming’"
"5.8 Critical Mass for Network Activation Thesis: Contribution systems do not primarily struggle with free-riding, but with achieving critical mass. The biggest risk is not that too many users extract value, but that too few contribute early on to reach sustainability."
"DAOs allow anyone to quickly influence decision-making and contribute to tasks"
"significant transaction fees on some blockchains [32], leading to voter fatigue."
"Delegation was widely regarded as a way to tackle voter fatigue, which many early DAOs struggled with. Actively taking part in DAO governance comes with high opportunity costs [30] and participation rates are even lower when transaction fees are higher [54]"
"This interdisciplinary approach not only enhances the accessibility of blockchain toolkits for developers and community members alike"
"Through a graphical interface that requires no prior coding knowledge, participants can deploy various token types"
"The co-design phase with the community emerges as a critical component of the project. This phase is supported by a toolkit... and is operationalized through workshop sessions that facilitate active engagement with community stakeholders."
"This may reduce cognitive load and limit manipulation."
"If whales hold disproportionate voting power, smaller holders may conclude that their marginal influence is negligible, leading them to free ride on others’ governance efforts"
"regulatory uncertainty erodes bridging social capital by deterring smaller stakeholders from governance participation out of fear of legal liability"
"User feedback highlights the platform’s intuitive interface and seamless integration with Solana wallets, lowering the barrier to entry for non-technical users."
"Participation Individual governance participants are able to influence governance outcomes. Participation increases buy-in. Increases legitimacy via high participation High voter turnout Give participants a voice"
"In an election, there is no incentive for them to vote against the wealthy agents, because to cast a vote on-chain, voters must also pay a transaction fee. Voter’s are economically incentivised to abstain"
"DAOs often face low participation: most holders do not see sufficient upside to engage, and reputational risk pushes signaling to the last minute."
"Common pain points include: • Endless discussion threads with unclear next steps. • Fragmented knowledge bases that deter newcomers."
"Snapshot accordingly introduced an off-chain voting tool that enables practitioners to efficiently access popular DAOs for voting, managing, auditing, and researching."
"All the voting procedures are essentially feeless as the operation is executed off-chain, avoiding costly on-chain verification. Users only need to connect their wallet to the launchpad and allow the action of signing."
"on-chain voting confronts the disadvantages of costly and delayed confirmation, significantly decreasing the willingness of participation of users. In contrast, Snapshot is an off-chain voting tool that removes the expensive consumption of on-chain interactive operations."
"Our empirical results discover a series of facts hidden from the light, covering its unfair distributions on such as participant regions or language usage"
"The two core values we believe should guide efforts to build or improve democratic tools, methods, and institutions are empowerment to self-rule and development of the capacities for self-rule."
"the fairness and inclusivity of contemporary decision-making processes [16,17]"
"developing advanced voting systems that ensure fairness and inclusivity, allowing all participants to have an equitable say in decision-making processes"
"DAOs should provide clear and comprehensive instructions to guide members on how to engage in the governance process. A lack of proper documentation may hinder member participation and create opportunities for attackers to push through malicious proposals."
"Given that such documentation is crucial for equipping members with the necessary information to engage in governance, we found that its absence correlates with a significant decline in participation. The average number of proposals decreased from 34 to 9, while the average voting participation drops from 3,342 to just 33."
"The results indicate that DAOs with better documentation see significantly higher engagement. Specifically, the average number of proposals drops from 34 to 9, and the average number of voting participants declines from 3,342 to just 33 in DAOs without documentation."
"However, more comprehensive documentation significantly enhances member participation in the DAO governance process."
"This leads to low baseline engagement, which persists across most DAOs. In Decentraland, average voter participation per proposal was 0.79%, with median participation at 0.16%... Across 30,000 DAOs analyzed, 53% were inactive, with no proposals in 6 months, and voter turnout decreased as DAO size increased"
"Empirical studies should center around governance fatigue and voter apathy in DAOs"
"decentralized digital spaces can sustain and govern themselves if they can efficiently scale while regulating issues such as hierarchical power structures and uneven participation"
"many early examples have reproduced the power asymmetries, exclusionary participation models, and inefficiencies found in traditional systems"
"This structural shift allowed Hypha to replace the “hyper-involved or disengaged” dynamic of earlier versions with a model that invites participation without demanding uniformity."
"⁃Web2-style onboarding: simplifies user interfaces, reducing technical barriers to entry ⁃Wallet-free participation: allows engagement without requiring crypto expertise"
"this work proposes a solution to enable the effective participation of stakeholders from different domains and society in a constructive dialogue, using digital platforms as a medium."
"Aspects of governance that promote broad participation in decision-making or enhance security are associated with positive outcomes. In contrast, barriers to the adoption of improvement proposals are associated with negative outcomes."
"this study reveals that DAOs are inherently susceptible to low voter participation, contradicting their decentralized ethos"
"DAOs are predisposed to low voter participation, especially among smaller stakeholders."
"According to their theory, the primary economic virtue of the public corporation does not lie in its capacity to pool vast amounts of capital. Rather, it is the hierarchical decision-making structure that makes it well-suited for running large business enterprises when shareholders lack expertise or the desire to acquire it."
"DAOs are likely to exhibit low voter participation. A considerable proportion of token holders will abstain from engaging in the decision-making process"
"The mean voter turnout rate is 1.77%... The median turnout rate is even lower, standing at 0.10%"
"on-chain voting can be costly, as it requires transaction fees, or “gas fees,”"
"Within a single DAO, the number of voters can range from a minimum of 76 to over 20,000, indicating that not all token holders exhibit an equal degree of interest in every decision within a DAO"
"The lower participation rates in these proposals may be attributed to factors such as complexity, limited impact, and lower stake."
"only about 7.92% of token holders ever engaged in the platform’s voting."
"The implementation of quadratic voting can also help to address the issue of voter apathy by providing token holders with a greater sense of agency and control over the decision-making process."
"a mere 7.92% of Uniswap token holders have ever participated in voting."
"Interviewee 8, active in the Translation Guild, framed elections as mechanisms of empowerment: “It was unbelievable that someone as young as myself could represent such a well-known DAO. That kind of empowerment is impossible in a company.”"
"successful governance hinges on thoughtful design rather than maximal decentralization. Inclusive participation, well-calibrated constraints, and security mechanisms can reinforce rather than undermine collective decision-making."
"off-chain voting through platforms like Snapshot eliminates transaction costs associated with on-chain voting, thus removing financial barriers to participation."
"This standardization can reduce the learning curve for new DAO members while maintaining flexibility for DAO-specific customization."
"a higher level of voting participation may not necessarily have a positive impact on network factors."
"Chronic lack of participation is consistent with rationality in many instances. The passive token holders may be of portfolio investors or may have a small enough holding that the costs of being an informed voter greatly exceed the potential benefits"
"there are potential problems arising from both delegation and increased direct participation. Most importantly, there is the danger that delegation or increased direct participation can reduce the likelihood that the DAO will make good decisions."
"The fact that DAOs have been characterized by low participation rates and a few key players running the show suggests that this situation may be common."
"many DAOs appear to be under the de facto control of a relatively small group of active token holders, often connected to the founders, surrounded by a mass of other token holders who rationally do not participate in governance."
"These holders may be portfolio investors or may be less active for Jensen-Meckling reasons: The benefits of the costly effort to become informed will accrue almost entirely to others."
"From an epistemic standpoint, however, the desirability of increasing direct participation is much more nuanced, and it depends heavily on the details of the composition of voting rights across voters."
"The Flooding Danger: Outside of the optimal epistemic environment, there is the danger that adding voters with low levels of competence will significantly lower the probability of making a correct collective decision"
"Zhao et al. 2022 look at how strategic and operational voting tasks influence product quality. They conclude that the number of operational voting tasks negatively affects product quality."
"Fig. 3(a) reveals significant variability in participation rates across DAO projects... This variability underlines challenges in sustaining consistent engagement across governance decisions."
"However, challenges such as voter apathy and the concentration of power among a few token holders highlight the need for more robust, inclusive, and accessible governance mechanisms that encourage broader participation"
"This approach leaves no path for individuals to review and contest the accuracy of the summary, nor the representativeness of the digital twin."
"Blockchain initiatives often increase barriers for smallholder participation, favoring corporations and large-scale farmers, and subjecting smallholders to increased scrutiny and dependency on corporate platforms."
"Inclusive participation, well-calibrated constraints, and security mechanisms can reinforce rather than undermine collective decision-making"
"Flexible Participation: Multiple entry points accommodated varying availability and attention budgets"
"One delegate didn’t have enough context to answer the question, and Harmonica used the knowledge (results of Workshop 1) to provide relevant context and make it easier to respond."
"Integrate the constitution into a procedure. For example, you may decide to require all new members of the organization to read and sign the constitution."
"Concave decisions benefit from more inputs or more people guessing and are, therefore, better suited to as many decision makers as possible and do not require specialized expertise"
"Based on our research, DAOs can be good at: Sourcing (product ideas, feature requests, user feedback, BD inbound processing, etc.) Educating (new users, governance participants, and/or developers)"
"unexpected behavior, like a lack of participation, is a form of feedback about attention. We have often seen people blame their communities for what is actually a misdesigned detention economy."
"most organization 'members' (including shareholders/donors) do not have to engage in the day-to-day processes of the organization's production"
"These include special commissions or process dedicated to the representation of specific subgroups, especially subgroups that have been historically mistreated or disenfranchised within a given governance system"
"That’s why we see access points like SpaceX’s Starlink ... and basic computing devices as crucial first investments and milestones for getting communities onboard."
"Members are also invited, although not obligated, to participate in the governance of the cooperative itself."
"We value diversity of perspective because truly addressing complex problems requires evaluating them from more than one angle at a time."
"In the long term, we can expect the Citizens’ House to expand to include the thousands or millions or billions of humans interacting with Optimism."
"A higher number of voters has a notable impact on increasing the trading volume of DAI, including total volume and the volume of large transactions. Therefore, a higher voting participation rate proves advantageous for the DAI stablecoin."
"the number of votes per proposal as a proxy for community size is positively associated with DAO treasury size, reflecting the view that a larger crowd is willing to back the DAO"
"Where digital literacy or technical capacity is limited, municipalities should complement DAO-based approaches with more accessible participation tools to avoid exclusion and ensure broad engagement."
"A quorum of at least 30% of members is required for votes to be valid, ensuring that decisions reflect collective will rather than a small minority."
"Open membership allows any interested individual to join and participate in votes, ensuring broad engagement."
"Bélanger, F., & Carter, L. (2009). The impact of the digital divide on e-government use. ... Mäkinen, M. (2006). Digital empowerment as a process for enhancing citizens' participation."
"methodologies for disseminating governance tokens attempt to strike a balance between the relative ‘decentralization’ of voting power amongst a wide span of active or passive stakeholders while simultaneously incentivizing application usage and securing funding for the core team."
"We first measure the fraction of users that opted to delegate, as a function of the number of dReps... Our results show that it is easier to attract delegation from voters with smaller revealed sets... or with lower k’s."
"decentralized frameworks present a compelling alternative for promoting equitable participation, trust, and resilience in AI regulation"
"By leveraging participatory mechanisms, including DAOs, ETHOS directly addresses the EDPB’s call for context-aware evaluations of data subjects’ reasonable expectations."
"our findings suggest that structured, data-driven indicators enable DAOs to develop more participatory and automated governance models, ultimately strengthening their sustainability"
"DAOs with limited participation but substantial financial reserves may benefit from changes to voting accessibility or community engagement strategies."
"Participation has emerged as a major concern for DAOs. For the vast majority of projects, voter participation is very low and in many cases it is clear that a small group of actively engaged parties, including typically, some large holders, predominate in governance."
"There are many sound reasons not to vote. Consider three of them. First, small holders have little economic incentive to become informed... Second, and related, small holders face the “paradox of voting.” Voting is costly... Third, some DAO token owners will be portfolio investors... It will be difficult and costly for them to participate in governance"
"“Democratic” ideals and the desire to avoid de facto centralized control both create an impetus to increase direct participation. From an epistemic standpoint, however, the desirability of increasing direct participation is much more nuanced"
"One idea is to include an “abstain” option so that voters can signal engagement without voting for an alternative. Doing so might add to the perceived legitimacy of the choice process."
"DAO participation can be enhanced with no epistemic cost in the optimal epistemic environment."
"active users who understand the protocol and want it to grow, but otherwise lack sufficient voting rights to participate meaningfully."
"Theorem 10. The Mean Rule satisfies participation... Example 5. The Quadratic Rule does not satisfy participation... Example 6. The R3 Quorum Median Rule does not satisfy participation."
"Governance Process Entry Barriers: ... The entry to governance is always gated through one of the following: Token Ownership, Invitation, Token Ownership and Application, or Token Staking."
"Community Participation: The Taxonomy uses five characteristics for activity in a DAO... None... Some... High... Very High... Full"
"The AI-based decision-making of Governatoorr provides a process designed to minimise the requirements of participant attention, but in the process it introduces new obligations—configuring the AI agent and managing the complexities involved in its operation."
"there is a pressing need for deeper research into how such systems can support inclusive, democratic, and cooperative values"
"A primary challenge is ensuring enough contributors exist and feel valued, rather than preventing outsiders from consuming for free."
"Regular, ongoing voting replaces traditional periodic voting, making active participation more feasible"
"Onboarding programs Virtual Geared to onboard developers to Bitcoin core or related projects, eg bitcoindevs.xyz"
"entering the inner circles is less transmissive (e.g., becoming a core developer)."
"Many DAOs apply stricter quorum requirements for higher-impact proposals, while allowing lower (or no) quorums for lower-impact proposals"
"This has the potential to generate significant economic and social impacts, fostering more inclusive and collaborative economies"
"Time-bound voting periods and configurable quorum thresholds ensure structured and efficient decision-making."
"By leveraging preference intensity through time-lock commitments, Signals constructs a dynamic idea board where the most strongly supported initiatives rise naturally, keeping attention on what matters and when."
"Implementing such measures, we expect to see an improvement in the overall quality of proposals and a reduction in the number of frivolous or fraudulent proposals."
"it is critical to identify the most effective collaboration tools that support transparency and inclusivity across large and diverse organizations, while balancing consensus-building with efficiency and scalability"
"addressing these gaps requires proactive measures to integrate marginalized populations and foster inclusive participation"
"supportingvitalityateverystageofdevelopment"
"Stakeholders with an ORCID will receive 1 OR free of charge... Stakeholders without an ORCID need to purchase NORs at market value to become members."
"Iain D Couzin, Christos C Ioannou, Güven Demirel, Thilo Gross, Colin J Torney, Andrew Hartnett, Larissa Conradt, Simon A Levin, and Naomi E Leonard. Uninformed individuals promote democratic consensus in animal groups. science, 334(6062):1578–1580, 2011."
"[392] Tahira Reid and James Gibert. Inclusion in human–machine interactions."
"[397] Jário Santos, Ig Bittencourt, Marcelo Reis, Geiser Chalco, and Seiji Isotani. Two billion registered students affected by stereotyped educational environments: an analysis of gender-based color bias."
"Non-users affected by externalities from the platform—such as anti-social behavior or the spread of misinformation—would also have an incentive to join, gain currency and provide feedback to mitigate negative impacts."
"Within SeeDAO, xiāo-yáo manifests as a collective ethos rather than an individual state: members move fluidly between roles and projects, balancing initiative with repose."
3
0
Improve governance process quality, deliberation, proposal standards, and strategic alignment
0.92
Evidence 147 82 5 41
"“the build key comes from the shared language. I think shared language would be the key thing to take away here.”"
""Low participation rate in governance proposals and discussion.""
""Most governance proposals are usually not detailed or contextual enough because adding all the details may compromise or hand product features, trade secrets etc.""
""And poses the question of if I am voting for a decision which I just have little or half context, then what really am I voting for?""
""Ownership tokens, research on attention economy (how to capture the right audience in a space or world of short attention span), confidentiality and transparency intersection research, providing as much information as legally possible to better inform the right audience""
"More effective treasury management and capital allocation"
"Lack of clear processes for capital allocaiton decisoin making, lack of treasurey management planning and strategy, lack of effective capital allocation planning/KPIs/performance monitoring and curation"
"Evidence driven treasury policy and management, results focused capital allocation strategy"
""the proposer needs to be technical enough to compile call data generally, kinda creates a boundary or gate or or a hurdle for for the community to, participate""
""the call data would be executed creates, like, paralysis with governance teams""
""it's just really, really slow. It slows down the process""
""the goal is not automation for its own sake, but to reduce cognitive overhead while increasing analytical depth for delegates and ecosystem builders.""
""Contributors either default to heuristics such as following large delegates, abstaining due to insufficient synthesis time, or voting with partial context.""
"“as governance scales, the scarce resource isn’t voting power .... it’s credible review, so outcomes start tracking narrative and urgency more than truth”"
"“Open governance systems often optimize for participation but not for reasoning”"
"“Accountability without institutional memory: chains have perfect data, but governance often has amnesia”"
"“the system can’t reliably answer ‘what did we buy, did it work, and what did it cost us over time?’”"
"“debates restart from zero each cycle, and ‘reputation’ becomes storytelling rather than a verified track record”"
"“Move from ‘funding as applause’ to procurement as governance: require a pre-flight packet (scope, milestones, acceptance criteria, maintenance expectations, rate justification)”"
"“normalize ‘no technical review = no funding’ for technical work”"
""Governance suface area is unique in every ecosystem.""
""Most projects do not communicate the exact governance surface area clearly enough in documentation.""
""each ecosystem has their own unique set of values, goals and priorities that delegates unfortunately do not always understand""
""The governance team stayed strong in sticking to the priorities that were ratified by the community via governance vote for year 1 which were 1) protocol security 2) chain incentives 3) app incentives.""
""All projects could benefit from trying to be more transparent about their true governance surface area.""
""Delegate onboarding programs/tests could be useful to ensure delegates understand exactly what your governance governs, understand priorities and strategy.""
""Scroll's co-creation sprint project ... brings core team members/builders together with the community to help agree on annual priorities / strategy.""
""I see a lot of organizations reaching for governance tools without being clear about what they are governing and why those particular tools are fit to what they want to accomplish.""
""It is important to ground any collective project in the what and why.""
""How to ensure governance remains peer-to-peer (P2P) at the core, while enabling peers to voluntarily group, recursively.""
"DAO governance is centralised, opaque and very noisy."
"the open door policy means that there is an immense amount of poorly informed opinions and proposals, with very little tools that effectively and efficiently filter the signal from the noise."
"I put these problems together because, in my opinion, they are symptoms of the same problem: a lack of governance structure."
"There are no roles with designated rights and/or responsibilities, no proper ways to elect or hold representatives to account, etc."
"Still a lack of insights from real world governance being applied to the design of new governance protocols."
"Governance is not about solving objective bottlenecks to collective alignment, but about creating legitimacy for collective decisions."
"This implies designing a governance protocol that allows communities to create their own roles with specialised rights and responsibilities, design some type of filters / throttles to avoid being overwhelmed by noise, and define how different roles check each others to ensure accountability."
"We need a governance protocol that provides a simple but general framework for institutional governance design."
""Expand governance education, onboarding, and digestible summaries to support participation""
""en Anode (antes Stablelab), donde hicimos un curso sobre Scroll Governance en el que hubo bastante participacion y la gente salio contenta""
""abogaria por mas DAOs con newsletters/forum posts con resumenes de gobernanza""
"“The inability/lack of willingness of new mechanisms to be scientifically evaluated.”"
"“Given a problem domain (eg. Delegations) how vendors pitch ideas, how the selection happens is oqpaque.”"
"“Since the identification of the problem and selection of the solution there has been zero communication as to the implementation”"
"“Despite pushback from several contributors there was limited opportunity for evaluating the solution space.”"
"“As a result we have minimal clarity on how the core problem is actually being solved.”"
"“I would much rather see RFPs from several vendors; Top three are awarded 10-15k each; and then after proper research. The winning proposal is awarded a 70k budget.”"
"“Currently we see DAOs paying a premium with zero competition or sane evaluation of the tender process.”"
"“Currently, most DAOs operate with little direction, i.e not moving towards a common goal.”"
"“How are we evaluating if the projects we are spending money on contribute to that objective?”"
"“these so called committees becoming a centralising force and very rarely create processes or procedures that involve the broader token holder base.”"
"“The process for submitting a proposal is too hard to understand, preventing new participation.”"
"A lack of leadership clarity from the protocol on their core priorities for the short term for the dao to align as such."
"Priority setting, education and standard outside a template on proposals."
"Small group to review proposals and push back to make it clearer and something someone outside of crypto wpuld see and make sense."
""miscommunication and procedure""
""authored a highly significant Request For Proposal (RFP) titled 'Amend Working Group Rules'""
""ENS DAO Governance and Operations Documentation/By-laws, Version 1.0, Summer 2024""
""ENS DAO Governance and Operations Documentation/By-laws, Version 1.0, Summer 2024""
""our Public Goods Award structure (seems to / may) encourage single-maintainer projects""
""There are emerging efforts and prototypes at the intersection of AI and governance, including tools that summarize and interpret proposals""
"“what's missing is the organizational practice layer - no one is responsible for synthesis, there are no standardized processes for outcome reviews or retrospectives, and there's no metadata framework that makes historical decisions legible to new participants.”"
""Protocols lack structured systems to retain and transmit governance decisions across contributor turnover cycles.""
""This causes repeated mistakes, redundant proposals, and erosion of institutional knowledge.""
""The problem is that this data is cognitively inaccessible without structured interpretation.""
""Proposal Lifecycle Metadata (PLM): Structured tagging for proposals that captures authorship, problem statement, discussion evolution, and implementation status.""
""Outcome Review Anchors (ORA): Time-based (30/60/90 day) and event-based checkpoints that evaluate whether proposals achieved their intended results and surface unintended consequences.""
""Recurring Themes and Frictions (RTF): Synthesis layer that identifies patterns across proposals.""
""The Metagov KOI (Knowledge Organization Infrastructure) group is developing a RID (Reference Identifiers) system that tags knowledge objects and tracks connections across different communication channels - Discord, forums, GitHub, etc.""
""The challenge is that most of these solutions require sustained organizational commitment rather than one-time technical fixes.""
""it needs to start with a clear definition of the purpose of the DAO and mapping stakeholders.""
""there are various tools and approaches towards working with the core stakeholders to identify the strategy and roadmap, and to get at least majority consensus.""
""mission public did the deliberation experiment with cosmos. at Scroll there were co-creation cycles, which are being adopted (in some way) in NEAR.""
""clarifying the purpose of a DAO and setting realistic expectations, along with developing roadmaps of how to execute on the strategy""
""because if we don't know what we're trying to accomplish, what is the point of voting?""
"Create governance templates with other decision-making models."
"Create an AI agent that helps groups define the best decision-making mechanism for the specific situation"
"Governance Around Priorities that can be measured ( eg: Fund Growth Projects, Ecosystem Needs)"
"“mapping of phases of gov to tooling - which lead to best outcomes”"
"An AI agent that helps groups define the best decision-making mechanism for the specific situation (following templates)"
"1. Intense deliberation, 2. co-creating a constitution, 3. governance minimisation & ossification"
"“design a DAO that uses all of the phases of deliberation intentionally https://metagov.org/delib-tools”"
"“A gov framework of proven, legitimate practices that appeal to risk-averse audiences who don't want governance for the sake of governance”"
"Using Frontier AI as a means to screen governance proposals and provide feedback"
"Applying tools from econometrics/ econ policy evaluation, and web2 experimentation eg A/B testing could be a great start"
"Voting without/ too little deliberation"
"Misunderstanding of social choice theory, ignoring research"
"existing programs renewed with no reflection"
"no clear info-sharing channels, or scoped re-election periods, between delegates and voters"
"Little to no culture for meaningful experimentation."
"(Pilots -> Iterations -> Final Mechanism)"
""Legitimacy" undefined"
""We approach the issue of governance from a technical perspective rather than a human one""
""Mechanisms are designed in a very 'theoretical' manner, often not being grounded in practicalities""
"Most DAOs copied gov from other DAOs vs designing for their needs"
"This is actually a symptom of a much larger, more serious problem, which is a general stasis and lack of experimentation"
"Lack of experimentation with deliberative tools"
"Promising solutions (dual governance, optimistic governance, committees, etc) still very bespoke"
"hard / expensive to replicate"
"“governance experimentation is a public good → therefore way underfunded”"
"“Difficult to move from theory to practice”"
"## Lack of Mission/Vision/Strategy"
"Lack of clarity on clear priority of the DAO/Org"
"eg: this season we focus funding on tvl"
"Should be defined early in the DAO's journey"
"Poor expectation setting at the start leading to mass miscommunication"
"“mission, vision, strategy discussions don't take place”"
"Very little shared purpose beyond number go up"
"Technical blocker to flagging something as in or out of scope."
""Governance" view as bloat"
"not sufficient knowledge about governance processes"
""Imagine you have two identical projects. One with "good governance", and one with "Bad" governance. What do they each look like?""
"“Consolidate the governance stack under shared open, composable, infrastructure”"
"“Less tooling, more practice and organic growth of processes”"
"'Acknowledge that rules and institutions are part of governance :)'"
"'Emotional expectation setting from the start'"
"“Aligning organizational values to better scope the purpose, value, and 'right' structure of governance”"
"Learn from existing off-chain governance"
"Inspiration from the cooperative world on governance"
""Rules that define who has access to roles, what powers roles have, how roles limit each others powers.""
"## Participation Rewards"
"Better conversations, not better voting."
"“governance is NOT just about decision-making”"
"Formal retros so we can iteratively improve"
"“Use of deliberative processes”"
"“Iterative governance design that evolves similarly to how case-law does”"
""How are daily operations separated?""
""Social and epistemic capacities (deliberation quality, shared language, institutional memory, stewarding roles) are treated as secondary or ‘soft,’ so they are rarely resourced or measured with the same rigor as token flows.""
""Invest in social and epistemic infrastructures—shared language, reflective practice, historical memory.""
""Epistemic principles (memory, language, and organizational learning) ... decision logs that capture reasoning and context, deliberation processes that surface stakeholder mental models, and regular review cycles.""
""Social principles (roles, accountability, and graduated escalation) drawing from Ostrom's commons work: clear roles with defined scopes and accountability, graduated conflict resolution pathways, and nested layers of decision-making.""
""Gitcoin ... are now investing in a constitution, professional delegates, steward training, and clearer roles and scopes.""
""We need a fundamental reorientation from ‘designing solutions’ to ‘building capacity for continuous navigation.’""
""the only solution is just robust organizational structure that establishes a cultural awareness of the problem and reduces barriers to staying engaged.""
"“there's no straightforward way to create a sort of 'hybrid-DAO entity' institution cross-over.”"
"“people are not engaged enough with governance as a topic. It isn't inspiring for most people in the current formats”"
"“its such a heavy topic, its reading-heavy”"
"“there's a lack of formal resonsilibities and roles, missing accountability for previous decisions, delegates are not neccessrily reliable, there's not that mich structure.”"
"“Sometimes DAOs tend to spend to much time discussing, and not enough time on implementing / executing.”"
"“One of the biggest issues I see in many DAOs (including RARI DAO) is that the Foundation is taking on 'DAO operations' work - i..e. management of the treasury without any visibility or current transparency of the spend.”"
"“Not just the Grants committee, but marketing, audits, treasury/expenses management, proposal project management and DIP program management.”"
"“people not having the skills on how to make a proposal (though i guess there could be a format)”"
"“i think a built-in format for proposals could be useful.”"
"“Mostly governance is seen as a source of noise and distraction. Not as a place for valuable proposals and contributions.”"
"“Another problem is that governance is too open. Instead of clear guardrails and participation anyone can do anything.”"
"“Getting clearer on how to participate. For instance quests for newcommers, gauges for low-intent token holders”"
""one of the governance challenge that I identify is, lack of a clear mission and lack of clear incentives for founders""
"Initiatives to design and implement more structured and hierarchical governance and decision-making processes should be funded to improve effectiveness and reduce noise."
"We describe governance as a cycle of doing something, learning from how it went, deciding to undertake a change process, and returning to action under a new plan."
"Agenda setting | prioritizing, framing, identifying dimensions and stakeholders ... Deliberating | explaining yourself to others, being paraphrased to others, articulating values, arguing positions ... Proposing | ideating solutions, forming proposals, modeling scenarios"
"platform governance design choices are crucial for DAO success"
"Because it professionalizes the boring work: reading proposals, analyzing risk, showing up consistently, explaining decisions publicly"
"Turns disconnected programs into one continuous funding system: Design → Fund → Assess."
"Traditional governance approaches face an inherent trade-off: sync workshops provide rich interaction but limit participation, while async forums enable broad participation but often lack depth."
"Without clear criteria for evaluation, voting became popularity contests rather than strategic assessment."
"The workshop revealed a key insight: many domains have dependencies that weren’t initially clear: Strategy must precede branding"
"The ability to adjust prompts based on early responses (Session 1’s shift from “stop” to “start” focus) demonstrated AI’s advantage over traditional surveys."
"Progressive Prioritization: Build ranking exercises throughout, not just at conclusion"
"High stakes or Irreversible decisions: True consensus is needed, so voting will be a sub-optimal aggregation method. Aggregation methods that optimize for information aggregation should be considered (non-voting mechanism like NLP, deliberative processes, etc.)"
"The number of subjective decisions voters are asked to make should be reduced. Instead, humans should be empowered to override otherwise algorithmic decisions."
"Attempts at strategic alignment are usually made via artifacts that results in more bureaucracy, not more alignment Strategic alignment must be designed into DAO operations themselves, so merely taking action within the system is inherently aligned"
"Batch proposals that don’t allow for valuation of specific outputs should be avoided"
"What MUSE emphasizes is to build a “logic model (implementation plan)” through using structured evidence."
"What was missing were the social tools for deliberation and discussion, like forums, community building, and operations."
"But that still requires deliberative processes associated with agenda setting and figuring out what proposals are going to be on the docket, establishing various rules about what is required to pass a proposal."
""To the extent a future state in which individual organization members disagree is predictable, then mechanisms will be embedded ex-ante to reduce or resolve this disagreement. Unanticipated events ('unknown unknowns') by definition cannot receive this kind of treatment ex-ante.""
"The strategy for the algorithm was voted on by citizens at the start of the mission and shaped over the course of the mission by community feedback."
"Finalize the set of proposal types outlined in the Operating Manual and transition the Working Constitution to a Bedrock Constitution on the original four year timeline."
"Critical Nuance & Refinement (7%): This is the rarest. The initial agreement is pressure-tested, challenged, and refined into something more robust."
"the democratic limitations of the Proof of Humanity DAO... due to its lack of political deliberation, internal polarization, weak internal legislation"
"Thecommunityvotesfairlyevenly,withthewinning option receiving an average of 86.73% of the voting power used on that proposal and 75.83% of the votes."
"the analyzed proposals primarily address the day-to-day operational aspects of the community and the development of new projects that will facilitate the platform’s growth. These proposals lack strategic significance and have no further implications"
"Usually, the suggested changes will be written in the form of an Improvement Proposal (IP), which is then voted on through an established poll"
"Maker users rely on developers to provide detailed proposals, the aims of codes and explanations of all possible outcomes in an understandable way."
"The basic auction creates a determinate outcome, one that awards control to the party that claims it can perform in a way that has the most benefit for the other token holders, a claim that is backed up by a value deposit."
"The first stage of decision-making, known as sentiment analysis, involves community discussion and an off-chain straw poll, providing a cost-effective means of gauging support."
"A case study of Decidim in Barcelona found that the platform’s interface effectively promoted discussion by combining discussion threads and indicators to guide recommendations"
"Online discussion forums enable proposals to be debated before voting, fostering informed decision-making."
"We, therefore, aim to define categories that cover the whole spectrum of proposal types in DAOs that can be used for further, more insightful research on DAO governance."
"The result shows that over 60% of the examined proposals fail to provide a consistent description and code for their members, highlighting a significant gap in ensuring transparency within the DAO governance process."
"The proposal description should align with the proposal code, ensuring members are fully informed about the proposal’s intent and allowing them to cast an informed vote."
"Our results suggest that members currently do not pay sufficient attention to proposals. Of the 25,051 proposals analyzed, 19,148 either lack a description of the proposal code or only contain a description without corresponding code."
"we suggest the DAO should force the consistency between proposal description and tools and develop tools that can automatically supplement proposal descriptions with missing proposal codes and explanations."
"The first step involves proposers sharing their ideas on Uniswap’s online discussion forum."
"before an on-chain vote occurs, the proposer must submit audited source code that implements the proposed change."
"Temperature Check ... 2 [days]; Consensus Check ... 5 [days]; On-chain Vote ... 7 [days]"
"we define the following research questions: RQ2: Which Key Performance Indicators (KPIs) can be used to evaluate DAO sustainability, including financial stability, governance processes, decentralisation, and community engagement?"
"Scatter plots of approval rate versus average voting duration suggested that overly short windows may hinder deliberation, while excessively long ones can reduce engagement."
"“Deliberation and the wisdom of crowds”"
"decentralized governance may require institutional responses—such as delegation design, proposal screening, agenda management, or other participation-saving mechanisms—once governance workload grows sufficiently large."
"Votingonuncontroversialproposalsiscostlyandinefficient... Thecostanddelayofcollectivedecision-makingcanreducethescalabilityandisparticularlyproblematicfornewDAOsintheirgrowthphase,wheredecisionfrequencycanbehigh."
"This iterative learning mechanism resembles adaptive systems in social choice theory, where feedback loops (such as post-round reports, retrospective debates, and proposal design changes) help refine collective decisions over time."
"we extend the definition by requiring an explicit notary (voting) process for each DAO. An explicit notary (voting) requires a process that is not ad hoc and leaves space and time for discussion."
"the emphasis on allocating funds through proposals and DAOstack’s tools came at the expense of other kinds of community building activities. This was additionally compounded by the limitations of the software in providing other interaction affordances such as deliberative discussion."
"The design principles we outline below likewise function as a diagnostic checklist or heuristic—a set of critical factors to consider—rather than a statutory code."
"The paper concludes by highlighting opportunities to refine Bitcoin’s deliberation process"
"Proposals to improve Bitcoin’s governance, such as its deliberation mechanism"
"We also found that Bitcoin governance could be enhanced by improving deliberation, potentially initiated by a sub-group within the ecosystem integrating recent findings from digital democracy research."
"we observe that the vast majority of mechanisms relate to the phase of voting, while few best practices and more challenges are associated with the preceding phase of deliberation"
"These challenges underscore the need for more robust theoretical frameworks and governance mechanisms to ensure that DAOs can respond to the real needs of the addressed community"
"The absence of cohesive bridging capital between these cohorts can cause confusion about strategic priorities such as short-term price appreciation or long-term protocol sustainability"
"These mechanisms enforce deliberation windows and multi-party consensus for high-impact decisions"
"Process Governance processes are consistently upheld (don’t break your own rules!) Increases legitimacy by upholding process Pre-defined change processes Ensuring everyone, including the Foundation, is subject to the same rules"
"Signals is an on-chain protocol that converts latent community sentiment into a real-time, ranked idea board of DAO initiatives."
"the proposer may proceed to draft the proposal by specifying the content, options, and voting rules, as well as setting the start and end dates."
"a considerable number of proposals (approximately 17.7% of all proposals... ) are completely irrelevant to the project’s development, and merely consist of inappropriate or offensive content"
"the implementation of more stringent entry requirements for proposal creation is necessary, such as mandatory completion of a tutorial on governance principles or holding a minimum number of project tokens."
"When choosing technologies to facilitate or augment governance, we must consider not only their functionality, but also the values implicit within the technologies themselves."
"During deliberations, people should encounter each other’s actual words and writings—LLMs should not be used to smooth over the texture and particularities of human expression and conversation."
"The classification and categorization of DAO proposals present another important challenge that needs to be addressed"
"enhancing collaborative decision-making processes"
"For Proposal, especially those that involve transferring DAO assets or modifying ownership, the code logic must be clearly defined and fully explained to DAO members."
"The proposal description must fully detail all aspects of the proposal code to ensure that members are well-informed."
"In response to the observed inconsistencies in proposals, we suggest that DAOs enforce consistency between proposal descriptions and the actual code."
"Centralized or semi-centralized governance models can also promote better strategic alignment... Rather than relying on unpredictable token holder sentiment, Optimism can channel effort toward its core mission of funding digital public goods."
"This model allows voters to independently develop proposals and receive feedback from members of the digital commons before it is put to vote."
"members of the digital commons must discuss rule changes, or update smart contracts, and subsequently encode these changes"
"The institutionalization of sense-making—the space for dialogue and deliberation before formal decision-making. “Posting a proposal without having done the sense-making beforehand? Ninety percent of the time, it fails.”"
"Unlike consensus or majority voting, this approach enables alignment even without agreement: “I may not agree, but I understand and support the direction.”"
"it is a long debate that requires proper organization to ensure the persistence of the facts produced by a multitude of stakeholders"
"This article suggests policy interventions to stimulate voter engagement and foster genuine decentralization."
"This change aims to simplify and streamline the governance system, as the previous process was considered too complex, resulting in low participation and engagement from the community."
"UNI holders must post their proposals on the governance forum for a minimum of 7 days to allow the community to review, comment, and ask questions."
"Voters tend to be more engaged in broader strategic decisions and proposals with more significant implications for the platform. In contrast, they may be less interested in voting on technical or specialized matters, which could be due to a lack of understanding or perceived relevance."
"establishing standardized requirements and guidance for information disclosure is a crucial approach to enhancing voter participation and improving DAO governance."
"Implementing proposal standards can significantly improve the quality of proposals and discussions within DAO governance forums. By setting minimum requirements, such as a 5,000-word length or mandating answers to a set of predetermined questions"
"We kept the community running through meta-rules. Of course, this required a lot of communication. Voting mattered, but it couldn’t replace earlier dialogue"
"standardized proposal templates can serve as a tool to guide users to provide comprehensive information about their proposals, including implementation details, expected benefits, and potential risks."
"Standardized proposal templates with required fields for impact analysis"
"Session 2’s design allowed expertise-based domain selection, but this created tension with prioritization goals. Participants might deeply explore less important domains while skipping critical but unfamiliar ones."
"Democratic deliberation is supposed to help people reason through complex issues and arrive at reasoned judgments... it’s possible that AI assistants for voting will cheapen deliberation more, leaving voters less informed and less engaged."
"The auction aspect of the mechanism provides a way out of the potential indeterminacy and pathologies that arise from pure voting mechanisms."
"the redirection of attention might also detract from critical components of governance, such as collective deliberation and trust-building through human relationships"
"one-sided results do not necessarily mean “bad”, which instead indicate that DAO members tend to make an instant decision without significant debates."
"initiative formulation, democratic deliberation, and perpetual administrative transparency"
"CCC3 followed a deliberate “diverge-converge” methodology across two phases"
"Draft in stages... Allocate initial responsibility for draft to a small core group... Share the initial draft with a small number of individuals... Share the secondary draft more broadly and give time for the greater commons to respond"
"When mapping EBP onto the PDCA cycle, it becomes clear that the P component is lacking... The system is not set up to start projects with evidence-based planning at the P stage."
"Processes relate to kind of both organizational and technical... Rules, norms, and shared practices are implemented to turn attention into outcomes."
"Through continuous feedback loops with youth negotiators at events like COP29 in Baku and UNCCD COP16 in Riyadh, the system evolves to better serve its users’ needs."
"Proposal writing becomes prompt engineering"
"In 2021, Smart Germany undertook a lengthy discussion about whether to raise the fees taken by the cooperative. Möltner says that this process, which took about six months to complete"
"Continuous improvement. The reward algorithm evolved throughout the round. Weights, event definitions, and metrics are frequently updated in response to community feedback."
"These “Problem Spaces” are intended as starting points for discussion, not as a prescriptive roadmap."
"Consensus emerges when enough agents read a situation similarly and DEFINITELY not because someone (agent or human) made a compelling argument."
"voting mechanisms and other governance elements may have a process value to participants independent of operational efficiency."
"The Auction Reset Steps are: 1) The purchase deposit... 2) The token deposit and dynamic vote pool transition... 3) The value deposit transition... 4) Treatment of the current surety deposit. 5) Treatment of the previous surety deposit."
"One potential serious problem with this approach is that the enterprise may benefit at a later point from a major reorganization or revamp, perhaps with innovation in mind, that is critical to maintaining ongoing dynamism or even for the survival of the project."
"the consensus rate is negatively associated with DAO treasury size, reflecting arguments that the wisdom of the crowd requires disagreement, at least to some extent, to unfold its potential"
"Members can propose financial expenditures via platforms such as Aragon or Snapshot, followed by public discussions and votes."
"Aragón, P., ... (2017). Deliberative platform design: The case study of the online discussions in Decidim Barcelona."
"There exists no broadly accepted categorization of DAO proposals."
"KPI 3: Voting Mechanism Efficiency: This KPI considers governance effectiveness based on proposal approval rate and voting duration"
"A more dynamic approach, calibrating voting duration based on prior proposal complexity or participation history, could improve legitimacy without sacrificing efficiency."
"The analytic approach underlying these claims is based on two epistemic tests... assess how well various governance approaches aggregate information from a diversity of voters to maximize the probability of making a correct collective decision."
"The autonomous actions of the voters solely determine the outcome. Our approach is to apply the two epistemic tests, mining the results for more general insights."
"This type of situation is plausible, especially if a system pressures large sets of rationally uninformed voters into participating. Not wanting to devote much time, which may be totally rational, a large group might, for instance, go online and look at the first result that comes up"
"Framing the subject proposition also is critical and requires both a choice of objectives and selection of measurable outcomes that embody the objectives."
"For collective decision-making to remain genuinely broad-based, participants must monitor governance activity: they must read proposals, assess tradeoffs, follow discussion, and cast informed votes."
"The core idea is that scale in a DAO should be understood not only as the number of proposals submitted, but as the monitoring burden those proposals impose on the voting community."
"Governance proposals are often uncontroversial, so making them subject to voting is inefficient; instead, governance should focus on fewer, more controversial decisions."
"A.2 Pareto Efficiency... A.3 Monotonicity... A.4 Participation... A.5 Proportionality... A.6 Strategyproofness... A.7 Maximal Social Welfare (Minimal L1)"
"Governance Process has Proposal Creation Restricted... useful in very large DAOs to prevent spam and keep focus."
"digital democracy initiatives, such as those in Taiwan, have developed advanced deliberation tools that enhance reasoning, feedback, and sentiment analysis, thereby improving consensus-building and the identification of actionable options"
"strategically important proposals requiring more deliberation should be subject to a higher quorum, while a lower quorum with more operational proposals accounts for voter fatigue and allows the DAO to operate more efficiently"
"feedback loops (such as post-round reports, retrospective debates, and proposal design changes) help refine collective decisions over time"
"strong internal ties can catalyze swift decision-making and unity of purpose, but they may hinder broader outreach and innovation if the group closes itself off from external perspectives"
"Future empirical research should systematically examine how DAOs experiment with hybrid governance solutions, such as partial off-chain deliberation, on-chain automated enforcement"
"refining this categorization framework, improving its granularity, and incorporating contextual factors that may affect the success or failure of proposals could optimize proposal design, enhance decision-making processes"
"the project highlights the need for a degree of human-centered, deliberative processes to complement algorithmic systems"
"Outside the blockchain, the Governance Board, through Technical Support, will maintain email lists equivalent to the IETF/IRTF working groups (WGs) ... The GHAIA DAO Internet environment should host a repository of documents equivalent to IETF RFCs"
"[66] Bianca Trovò and Nazzareno Massari. Ants-review: A privacy-oriented protocol for incentivized open peer review on ethereum."
"If I knew a proposal would pass, I sometimes voted no. A two-to-one result let it pass but signaled concern"
"Tan, J., Merk, T., Hubbard, S., Oak, E. R., Rong, H., Pirovich, J., Rennie, E., Hoefer, R., Zargham, M., Potts, J., Berg, C., Youngblom, R., De Filippi, P., Frey, S., Strnad, J., Mannan, M., Nabben, K., Elrifai, S. N., Hartnell, J., … Boneh, D. (2023). Open Problems in DAOs."
4
0
Align governance with protocol, business, product, and real-world objectives, adoption, and legal context
0.89
Evidence 57 172 5 32
"“Furthermore this creates legal risks and uncertainty for stakeholders.”"
""Confidentiality vs transparency. Most governance proposals are usually not detailed or contextual enough because adding all the details may compromise or hand product features, trade secrets etc.""
""Or some decisions are shrouded in confidentiality agreements (mostly for good reasons) but this creates a problem regarding transparency.""
""providing as much information as legally possible to better inform the right audience""
""At just 3-4%, the ENS DAO's active voter engagement is far below the industry average of 25%""
""if a solution is integrative to the product, does it not essentially become part of the protocol, thus requiring a formal DAO vote""
""if you don't have direct execution power over the decision, the whole premise of decentralization and censorship resistance disappears""
""The actual governance of the project is whoever controls that circuit breaker""
""these two assets are inextricably linked, and they should belong within the same governance surface, isolating them just fragments the project""
""the governance token typically fails at aligning incentives across stakeholders because it has no viable claim over the economic upside of the underlying infrastructure""
""tokens should be treated as as equity""
""they should have on chain guarantees for the claims they have over infrastructure and more specifically over the capital flows""
""the governance process got overly fixated on distributing grants as opposed to growing the adoption of the underlying stack and capturing value back into the business""
""more directly tying the token to claims over the financial success of the underlying infrastructure""
""programmatic, excess cash distributions directed to token holders, whether through buybacks and burns or through buyback and distribute or through ve models""
""No hay una conexión entre la 'decisión de gobierno' y la 'verdad física' del resultado""
""La falta de 'Skin in the Game' físico es lo que impide la adopción real""
""En 2023, un tribunal de EE. UU. falló a favor de la CFTC contra Ooki DAO""
""Esto significó que cualquier persona que hubiera votado en la gobernanza era personal y solidariamente responsable de las multas""
""la blockchain solo verificaba la existencia del certificado digital (estado discreto), pero estaba ciega a la realidad física del bosque""
""VERP ... crea un puente legal y físico resistente a la censura""
""I see a lot of organizations reaching for governance tools without being clear about what they are governing and why those particular tools are fit to what they want to accomplish.""
""It is important to ground any collective project in the what and why.""
""Not governance for the sake of governance, but rather real control of material things.""
""The governance team stayed strong in sticking to the priorities that were ratified by the community via governance vote for year 1 which were 1) protocol security 2) chain incentives 3) app incentives.""
""Most projects do not communicate the exact governance surface area clearly enough in documentation.""
""each ecosystem has their own unique set of values, goals and priorities that delegates unfortunately do not always understand""
""Delegate onboarding programs/tests could be useful to ensure delegates understand exactly what your governance governs, understand priorities and strategy.""
""Scroll's co-creation sprint project ... brings core team members/builders together with the community to help agree on annual priorities / strategy.""
""Lack of leadership clarity from the protocol on their core priorities for the short term for the dao to align as such.""
""Currently, most DAOs operate with little direction, i.e not moving towards a common goal.""
""How are we evaluating if the projects we are spending money on contribute to that objective?""
""I've seen projects that have been funded with 1M plus funding with zero oversight that does not contribute back to the DAOs core business model.""
""when we decentralized in the too early or too in the beginning... founders don't have control over the implementation of it because it's already decentralized too early""
""I think the decentralization can be a part of, like, feedback mechanism, restricted to some domain, restricted to some part of it""
""there's no straightforward way to create a sort of 'hybrid-DAO entity' institution cross-over.""
"“lack of educational resources like 'guides' to get insitutions started, and wobbly legal infrastructure for institutions to be able to simply begin DAO experiments.”"
""because if we don't know what we're trying to accomplish, what is the point of voting?""
""it needs to start with a clear definition of the purpose of the DAO and mapping stakeholders.""
""there are various tools and approaches towards working with the core stakeholders to identify the strategy and roadmap, and to get at least majority consensus.""
""clarifying the purpose of a DAO and setting realistic expectations, along with developing roadmaps of how to execute on the strategy""
""Our nearly exclusive reliance on game-theoretical solutions to governance problems when they exist as a part of a continuum of potential solutions.""
""Many Web3 organizations end up with brittle governance: systems that look elegant on paper but fail under real-world complexity, create hidden forms of centralization, and struggle to adapt as conditions change.""
""Gitcoin ... are now investing in a constitution, professional delegates, steward training, and clearer roles and scopes.""
""Protocols like Lido and others [are] experimenting with dual or layered governance after discovering that pure token voting produced apathy, whale dominance, and difficulty scaling complex technical decisions.""
""A gov framework of proven, legitimate practices that appeal to risk-averse audiences who don't want governance for the sake of governance""
""Governance Around Priorities that can be measured ( eg: Fund Growth Projects, Ecosystem Needs)""
""Governance Theater (Used for valuation or legal reasons)""
""DAOs used as a legal risk hedging strategy rather than something cultivated for ppl to engage in""
""Decentralisation" has been only Howey Test defence"
""Unclear motivation for why a team wants sufficient decentralization (regulatory? strategic? legitimacy/ ideological?)""
""Clarify mission, vision, and strategy""
""Lack of clarity on clear priority of the DAO/Org""
""Most DAOs copied gov from other DAOs vs designing for their needs""
""Aligning organizational values to better scope the purpose, value, and 'right' structure of governance""
""Learn from existing off-chain governance""
""Need to use blockchain gov tooling on something IRL""
"The study implies that platform governance design choices are crucial for DAO success"
"The EGPL aligns software incentives with public goods production by ensuring that downstream economic benefit returns to the network that maintains the infrastructure."
"If governance is mission-critical (risk parameters, collateral decisions), you need: stable participation, informed voting blocs, clear compensation + accountability"
"Drive strategic alignment: Links capital deployment to long‑term intent so programs reinforce each other, outcomes are comparable, and progression can be measured across funding mechanisms."
"Need for clear differentiation: Consistent calls for defining Scroll’s unique value proposition in the crowded L2 space"
"Education as growth engine: Strong consensus that developer education and founder support are critical for long-term success"
"Education emerged as the highest priority domain in Session 2 but was deliberately skipped in Workshop 2 given existing activities planned by other ecosystem stakeholders."
"Notably, they are more or less embedded in existing legal structures; for instance, the constitution of Ethereum World explicitly mentions Swiss law."
"We have coded the goals that appear most frequently as “create technology,” “spread technology” and “create community.”"
"Examples of a prediction question: “What strategy will have the biggest long-term impact on sequencer revenue?”"
"More objective economic frameworks should be developed to reduce self-preservation tendencies that accrue value for the DAO at the expense of the protocol."
"Based on our research, DAOs have not historically been good at: Designing ... Incubating ... Negotiating or licensing"
"introducing evidence-based decision-making (EBP) within DAOs, foundations, and OSS communities that maintain and provide digital public goods is a reasonable direction for making funding allocations more rational."
"It helps round operators, donors, and ecosystem stewards see how funding decisions align with the strategic priorities of the Ethereum community."
"In regulated environments, this can translate to compliance gaps and board liability."
"what are the things that are appropriate to do at a smaller scale with a smaller number of people with focused attention? And then what are the things where more dispersed attention is important?"
"the availability of stablecoins backed by highly liquid (and therefore stable) assets constrains the production choices of any one organization issuing stablecoins"
"More generally, an organization's chosen purpose, through reifying a constitutive set of shared values, defining an internal political economy, and a set of competing organizations which members can plausibly join, is a principal determinant of the heterogeneity of member's preferences with respect to collective action."
"Additional forces external to an organization that can demand internal collective action include those of the laws and regulations of society, whose changes often require a response from a given organization."
"as a DAO's constitutive purpose... increases in scope and/or magnitude, that the need increases for ex-post adjudicative institutional solutions"
""Alston et al (2021) define the scope of an organization's purpose as the number of distinct outputs that achieving an organization's purpose entails. They define the magnitude of an organization's purpose as the number of individuals the organization's output is intended to reach or influence.""
"The purpose of Optimism governance is to reduce platform risk for the Collective's stakeholders."
"By combining technological innovation with social wisdom, RI’s goal is to provide a framework for addressing complex global challenges like climate change"
"we developed cutting-edge technologies... all in close collaboration with local and Indigenous knowledge holders"
"The same vulnerabilities I exploited in ten minutes—adversarial framing, invisible prompt injections, exploiting the model’s priors—can feasibly work anywhere AI sits between a human and a consequential choice. Shareholder votes today. Ballot initiatives tomorrow. DAO treasuries. Legislation."
"the DUNA statutes provide a way for DAOs... to receive automatic legal protection if they identify with and adhere to its terms."
"This work continues a broader initiative aimed at advancing retrospective funding mechanisms toward recurrent, concurrent, and ROI-positive systems"
"Any definition of "impact" should be co-developed with round managers and the community to align with program goals and shared norms."
"Even the best developed mutualist organizations are constrained by legal and financial infrastructure built for more traditional forms of business."
"Registered as a U.S. non-profit and a Moroccan cooperative, Anou presents an antidote to models that rely on middlemen, using technology to connect artisans directly to consumers."
"The app also automates administrative tasks such as the creation of tax documents to formalise artisan labour—improving access to workers’ rights and benefits in Morocco."
"Smart addresses this administrative and legal challenge through the form of the cooperative"
"in its role as investor, its decisions must balance economic sustainability with the desire for social and economic change through cooperativism."
"Over the long run, Optimism seeks to measure whether Retro Funding is shifting developer attention and incentives, and ultimately leading to faster innovation cycles, more winning apps going to market on the Superchain, and increasing revenue for the Collective."
"Did this OP spent today bring tomorrow's builders to Optimism faster than any alternative?"
"Over the long run, Optimism seeks to measure whether Retro Funding is shifting developer attention and incentives, and ultimately leading to faster innovation cycles, more winning apps going to market on the Superchain, and increasing revenue for the Collective."
"This impact should be evidenced by the following success metrics: 1. Increased Superchain TVL 2. Increased demand for Superchain blockspace"
"Over the next ~6 months, the Foundation plans to address the above failure modes, and work towards delivering the unique value propositions of Optimism governance, by putting forward proposals to: - Restructure how capital is allocated to more effectively invest in the Superchain - Enhance the OP token’s role in the Superchain - Add mechanisms to hold OP Labs accountable"
"This is especially true for an organization at Optimism’s stage in development, which has early product-market fit but must ruthlessly prioritize in order to scale and become profitable."
"Establish a legal structure (possibly a DUNA) to allow more voting power to come online and to transfer specific assets and governance powers to the structure with onchain controls."
"While the US legal landscape for token and governance remains in motion, we are not waiting for “clarity” to take action. OBOL has transitioned to a new operational phase focused on Protocol-Owned Liquidity and market health."
"The Obol Association is currently based in Switzerland with one key constraint: governance is non-binding. We are therefore closely monitoring regulatory developments to assess whether clearer frameworks or alternative structures may emerge that would allow us to establish a governance structure that is more appropriate, meaningful, and legally robust for Obol."
"The mission of BlockScience is to bridge the digital and physical worlds through innovative and sustainable engineering. We guide the development and governance of safe, ethical, and resilient socio-technical systems, leveraging emerging technologies to solve complex problems."
"The Token House is responsible for decisions that affect business parameters of the system such as inflation or the variables that govern sequencer selection."
"Existing standards rarely embed cultural norms, moral expectations, or local legal obligations."
"The primary topics identified are the effective management and governance of the platform and community and the platform’s strategic growth, with a particular emphasis on wearable technology."
"the community is focused on a wide range of topics, including the current infrastructure and practices in order to develop and expand the platform."
"we find centralized governance exerts complex influence on the adoption of Maker protocol."
"The main implication of this study is that centralized governance in MakerDAO tokens, governance very much exists, while DeFi investors face a trade-off between decentralization and performance of a DeFi protocol."
"The DAI market cap is expected to be a metric of the performance of Maker protocol as well."
"The mechanism not only facilitates the ability of DAOs to meet their normative and operational goals in the face of diverse regulatory approaches, but also strengthens the case for creating a less burdensome but at least equally effective regulatory regime for DAOs that employ the mechanism."
"the proposed approach is limited to economic DAOs, which are defined as DAOs with publicly traded governance tokens for which the token value reflects the inherent value of the enterprise."
"At any point after the initiation of the DAO, the mechanism will facilitate the implementation of the value-additive project that results in the highest social surplus"
"Suppose that among all of the potential bidders’ possible business plans, the business plan (V*, C*) creates the largest amount of social surplus"
"The goal is to cause the winning bidder to also lower its surplus claim... Successful surplus claim underbidding is socially desirable because more social surplus is shifted to the T1 token holders, which results in a positive investment impact while not affecting the result that the best business plan is put into effect."
"In this case, the social optimum is to end the DAO and distribute the treasury to the token holders, permitting re-investment of the treasury assets in more promising projects."
"In one common organizational structure, the DAO is embodied as a Swiss Foundation. The Foundation acts as a wrapper, creating legal personhood for the DAO, with concomitant limited liability."
"A key issue for both DAOs in general and for the mechanism in particular is the extent to which the associated technologies reduce the need for regulation. “Regulatory equivalence” exists if elements in the technology achieve the same purpose as regulation."
"The mechanism creates some regulatory opportunities, ways in which a DAO may fit more easily within regulatory regimes without compromising its central purposes."
"The ability of the control party to interact with regulators creates a shield for other parties, such as developers, validators, and token holders."
"Here, we have taken the position that the goal is to maximize the value of each DAO project with respect to an extended community that includes both present and potential future participants."
"The institutional investor can focus purely on the question of choosing a business plan that maximizes social surplus creation, aligning their motivation exactly with the auction mechanism."
"The study implies that platform governance design choices are crucial for DAO success."
"Our study seeks to address this gap by exploring the impact of on- vs. off-chain voting governance on DAO valuation."
"we find that DAOs that implement on-chain voting from the very beginning raise five times more funds than those governed off-chain."
"For policymakers, our study has important implications, as DAOs are largely unregulated in most jurisdictions, yet they promise to become central entities in the emerging metaverse"
"Considering the two main reasons for the existence of these tokens, it becomes apparent that token distribution is a critical factor in the protocols’ decentralization efforts."
"Future work should look at long-term effects, compare cases across municipalities, and examine the role of legal and regulatory frameworks."
"Such an assessment ensures that the implementation of DAOs is tailored to the community's real needs and guided by measurable goals such as transparency, participation, and service innovation."
"It must comply with Swiss association laws"
"Caviezel, M., Spychiger, F., & Stallone, V. (2024). Aspects for implementations of decentralized autonomous organizations (DAO) in Switzerland. ... Diallo, N., ... (2018). eGov-DAO: A better government using blockchain-based decentralized autonomous organization. ... Ietto, B., ... (2023). Blockchain for citizens' participation in urban planning: The case of the city of Berlin."
"the teams evaluate the balance between decentralization, incentivized participation and the need to secure venture capital"
"Transparent and decentralized governance for these core protocols is of utmost importance, reinforcing the call for design-driven research of on-chain governance mechanisms."
"these insights have significant implications regarding accountability. Moreover, they are relevant in the context of current regulatory initiatives aimed at pinpointing the individuals who either control or exert notable influence over DeFi operations or structures"
"a significant concern for regulators currently formulating policy recommendations for Decentralized Finance (DeFi) systems"
"it offers a systematic investigation into the role of vested users in the governance of DAOs. This, in turn, can provide valuable insights and inform ongoing regulatory debates on that topic."
"These proposals can change any aspect of the DAO, such as allocating funds, changing risk parameters of a Decentralized Finance (DeFi) application, upgrading the protocol, changing the rule for governance, or engaging in partnerships with other DAOs or companies."
"Partnerships and Ecosystem Development (PED) ... engaging in regulatory and legal activism"
"The DAO Model Law [30]... seeks to bridge the divide between DAOs and traditional regulatory frameworks yet to adapt to new company structures fostered by the blockchain."
"This integration not only complements existing frameworks but also introduces innovative mechanisms for compliance, transparency, and participatory governance, ensuring that autonomous AI agents are managed effectively and ethically on a global scale."
"Inspired by existing tiered risk classification systems like those in the EU AI Act, the framework grouped AI agents into four tiers"
"Given the global nature of AI development and deployment, international coordination is vital to promoting harmonized regulations across jurisdictions... reducing fragmentation and ensuring consistent governance of AI agents."
"The recent opinion by the European Data Protection Board (EDPB) on the use of personal data in the development and deployment of AI models underscores the critical need to balance innovation with the protection of fundamental rights under the General Data Protection Regulation (GDPR)"
"A key regulatory concern is whether these platforms are “sufficiently decentralized,” a designation that can exempt them from certain legal frameworks, including the EU’s Markets in Crypto-Assets (MiCA) regulation."
"Governance decisions fall into two broad categories. The first involves technical and economic decisions, such as protocol configuration changes"
"our results reveal that their delegated voting power may inadvertently reinforce a16z’s control even when delegating to an at first apparently independent delegate."
"Legal uncertainties persist in many jurisdictions, raising questions about liability [12], despite the fact that some jurisdictions have begun formalizing DAO-friendly statutes"
"Evaluating DAOs as complex socio-technical systems, rather than through isolated metrics, provides a more accurate account of their governance dynamics."
"All these results are significant because epistemic performance matters if entities such as DAOs... wish to compete with organizations that are more centralized."
"for independent transfer delegation by whales to be properly incentivized, the DAO must be an economic DAO, which we defined in subsection 2.1 as one for which the aggregate token value reflects the value of the project."
"There also are regulatory factors. Some approaches such as the FIT21 legislation passed by the U.S. House of Representatives and pending in the U.S. Senate create quantitative ownership tests that determine regulatory treatment."
"Some approaches such as the FIT21 legislation passed by the U.S. House of Representatives and pending in the U.S. Senate create quantitative ownership tests that determine regulatory treatment."
"For economic DAOs, there is an obvious governance objective that emerges from capital market pressures: maximizing market capitalization."
"“House Passes Financial Innovation and Technology for the 21st Century Act with Overwhelming Bipartisan Support”"
"The primary goal is to capture the “ground truth” of which projects have contributed the most value to the ecosystem."
"Purpose Community Building and Engagement (13) Product Building and Management (48) Investing or Fund Raising (11)"
"Has Legal Entity Yes – No"
"Purpose tries to describe roughly what a DAO’s main goal is... Community Building and Engagement, Product Building and Management, and Investing or Fund Raising."
"They invite consideration of whether the structure of attention in a system is appropriate, efficient, and just."
"Finally, the theme of legal and regulatory transformation explores how existing frameworks must evolve to accommodate the decentralized and autonomous nature of DAOs."
"the primary function of a contribution system is to create and sustain a contribution economy"
"Discussion of important design decisions in Bitcoin, such as the lack of a legal entity or the permissionless entry into the organization, put into the context of recent developments, e.g., Bitcoin ETFs"
"mechanisms supporting Bitcoin’s viability, such as the absence of a legal entity, that stem from its core value of permissionlessness."
"poses the risk of the DAO being considered centralised by regulators and being regulated as such"
"governance design is influenced by conflicting interests which do not primarily optimise for good governance"
"Unlike market-driven cryptocurrencies, these applications require governance and token systems tailored to collaborative objectives"
"The motivation for this research is based on the increasing interest in utilizing blockchain technology for social good and non-speculative applications"
"This supplementary framework would enable users to conceptualize and implement tokenized systems that align with their specific economic, social, and governance objectives"
"The guiding principle is that “impact should be rewarded,” and therefore projects creating ecosystem value should be financially supported."
"we focus on how well various mechanisms perform with respect to efficiency, strategic resistance, and fairness under realistic voter models"
"this study advocates tailored governance strategies, ranging from reputation-based voting models to legally compliant organizational wrappers"
"This study aims not only to provide theoretical clarity but also to point toward practical recommendations, including governance token design, liability structuring, and ways of fortifying trust among disparate participants"
"DAOs navigating securities laws or seeking to limit liability exposure often introduce centralized governance elements"
"The decentralized architecture of DAOs raises significant barriers to conventional regulatory efforts, calling for innovative regulatory approaches to address these digital and boundary-less entities."
"the rules that should be enacted for algorithmic intermediaries should be significantly different from those currently in place for traditional intermediaries"
"the New Code is dedicated to; (i) proffering resolutions to previously identified issues, (ii) rectifying deficiencies in existing regulations, (iii) proposing a harmonized and internationally applicable regulation..."
"this New Code is dedicated to; (i) proffering resolutions to previously identified issues, (ii) rectifying deficiencies in existing regulations, (iii) proposing a harmonized and internationally applicable regulation"
"Given the rapid advancement of technology, it is imperative to incorporate solutions rooted in innovative approaches into contemporary legal systems rather than merely adapting traditional models."
"The legal structuring of DAOs, which bridge the digital blockchain environment with traditional legal frameworks, remains an evolving field that requires careful consideration of regulatory compliance, governance efficiency, and the core principles of decentralisation."
"Ongoing regulatory developments will determine how much DAOs can achieve mainstream adoption while preserving their decentralised governance models."
"Another critical provision of the MiCA Regulation is Recital 74... This requirement has significant implications for DAOs seeking to provide crypto-asset services within the EU. Specifically, DAOs must adopt a recognised legal structure and establish a registered office in an EU Member State."
"Therefore, governance tokens—viewed as utility tokens with partial investment functions—may fall within the scope of MiCA. In that case, the DAO to make an ICO of governance token should be a legal person within the EU106 (wrappedDAO), thus integrating the formal tax nexus with the jurisdiction of incorporation of the legal entity."
"the time is ripe for DAOs to transition from the informal framework of Lex Cryptographia to a formal regulatory structure that ensures a level playing field for all stakeholders."
"Additional enhancements include AI-powered analytics, automated treasury management, and regulatory compliance modules to support a wider range of organizational use cases"
"All Foundation governance team goals must tie to a source legitimacy"
"Forgoing ballot secrecy is to regress centuries of progress, violate human rights and returning coercion and inequality as norms"
"UN General Assembly: Universal declaration of human rights."
"Exlopring how our findings can be related/reflected to real-world scenarios, in particular for policy considerations."
"DAOs exhibit a broad range of voting contexts, covering topics from budget allocations and project funding to community events and hiring decisions."
"Properly embracing legal regulation can avoid the above problems. Laws or regulations about blockchain governance need to be properly established"
"governance primarily comes from governments of different countries, even though blockchain is designed to be decentralized."
"Ethereum (after the Merge) PoS validators who rely on MEV-boots services may be monitored and regulated by the government (OFAC-compliant [74]). Additionally, pure cryptocurrency companies can also be governed. A noteworthy example is the US sanctions against Tornadocash [75]."
"important questions concerning the compatibility with current economic and regulatory frameworks"
"coherent legal frameworks to support decentralized operations"
"it will be crucial to create tailored designs that address the unique requirements of different industries. This involves ensuring that DAOs can integrate effectively with existing and complex organizational systems"
"there is a need to collaborate with policymakers and legal experts to navigate and resolve ambiguities, ensuring that DAOs can function within clear and supportive legal frameworks"
"The DAO Model Law [30], a type of Model Law [34], aims to bridge the gap between DAOs and traditional regulatory frameworks, which have yet to adapt to the new organizational structures enabled by blockchain."
"Further, it underscores the environmental costs of blockchain infrastructure... Ultimately, the authors propose a “dual imperative”: to develop context-sensitive, inclusive governance architectures within DAOs, while pursuing international legal recognition and standards."
"MiCA emphasizes consumer protection and operational transparency, which could pressure DAOs to adopt more formal structures or partner with compliant entities if they wish to serve EU users."
"Switzerland’s canton of Zug, often referred to as “Crypto Valley”, has developed progressive laws that allow DAOs to register as legal entities, such as associations or foundations... This legal recognition provides DAOs with the ability to enter into contracts, hold assets, and interact with traditional financial systems, while still preserving aspects of decentralization."
"empirical studies should explore how DAOs can adopt legal entities such as LLCs, cooperatives, or trusts while preserving decentralization"
"market volatility led to the devaluation of FairCoin, undermining its ability to sustain the network"
"ThisstudyismotivatedbytheneedtounderstandhowDAOscanovercomewell-documentedgovernancechallengesandsupport participatory, regenerative development, particularly in resource-constrained environments"
"⁃Field-tested use cases: implemented across diverse real-world contexts including energy, climate, and economic regeneration initiatives ⁃Community validation: actively shaped by practical input and iterative feedback from actual users"
"The economic model of the GHAIA DAO’s operating structure must be formally constructed prior to its establishment."
"DAOs are not yet regulated in many countries, which can create legal uncertainty."
"Roger Clarke. Regulatory alternatives for ai. Computer Law & Security Review, 35(4):398–409, 2019."
"We shall suppose that in the normal course of events each of the firm's securities is in the hands of a large number of small investors (i.e., the corporation is widely held)"
"Empirically, private benefits are, in most cases, forced to be small by.the fiduciary responsibility of management, and by the minority shareholders' appraisal remedy."
"legal doctrines of "fiduciary responsibility" and "fairness" will prevent them from being large very frequently."
"It is difficult to know how the courts will deal with these issues in the abstract"
"We thus see no reason to interfere with the ability of a new company to choose a corporate charter and security structure which gives it the lowest cost of raising capital."
"Even if it is undesirable to allow post changes in security/voting structures, this has no particular implication for legislation regarding listing requirements. An Exchange's listing requirements are an attempt to provide information to traders about the characteristics of the securities being traded."
"This makes sense when we interpret one of the bidders as the incumbent, but does not make sense if neither bidder is the incumbent."
"Indeed, an important regulatory concern in this space is how to police misleading characterizations, particularly regarding the extent of decentralization"
"These findings carry significant implications for the classification of DAO tokens as securities, hinging on their genuinely decentralized decision-making attributes."
"DAOs provide early-stage entrepreneurs with a protective layer through a novel organizational structure, underpinned by technological barriers and distinct ideologies."
"a16z recommends entrepreneurs in its portfolio adopt a strategy known as “progressive decentralization.” This approach entails that, following the creation of a product and the formulation of basic governance guidelines, the founding team should swiftly transition control to the community, ultimately attaining a sufficient level of decentralization."
"If empirical evidence corroborates this hypothesis of low voter participation, it would suggest that achieving a genuinely decentralized decision-making process is an elusive goal. As a result, DAOs should not be granted special recognition under corporate law and securities regulations."
"By analyzing the subjects of voting proposals and the support they receive, one can determine which matters fall within the purview of token holders for governance"
"The sector in which each DAO operates influences the proposal types that attract voters."
"these classifications should ideally be dynamic, adjusting based on the real-world governance of each DAO, with a particular focus on the degree of centralization in decision-making."
"The proposed “probationary business classification,” grounded in voting data, offers a potential regulatory solution to address the classification challenges posed by varying levels of decentralization in DAOs."
"ensuring those with influence over governance decisions have a vested and long-term interest in the community’s success."
"This self-sorting better aligns the scope of beneficiaries (those who benefit from decisions) with payers (those who fund or bear the costs of those decisions)."
"community currencies expand the possibility space to rectify externalities without necessarily compromising profit."
"the most meaningful exchanges remain in person, within trusted relationships. Community AI agents—rooted in local relationships and deputized to extend cooperation—can serve as the foundation for a bottom-up alternative"
"Although blockchain-based projects operate under significant regulatory constraints, grassroots DAOs have nonetheless taken shape... structural exclusion from global financial circuits and recurring challenges in sustaining finance-oriented models compelled SeeDAO to pivot toward community-centered activities... reorient the community toward public-interest projects and offline engagements"
"We realized our goal wasn’t to make money but to build relationships"
"their governance will likely evolve to align in accordance with their objectives. Such objectives may differ considerably from those of corporations."
"Regulatory resources, therefore, would be better directed toward addressing harmful behaviors, such as insider trading and other actions that threaten market integrity, rather than imposing one-size-fits-all governance rules."
"Governance centralization, however, appears to mitigate this effect."
"Implementation challenges arise from the difficulty of achieving global consensus on ethical principles and governance standards, which may lead to fragmented adoption."
"The two “innocent” goals of (i) allowing unrestricted participation in governance by bidding for shares (and associated voting rights) and (ii) safeguarding members from majority attacks by allowing them to exit and redeem their share can combine in practice to yield unintended consequences"
"Consequently, requiring human oversight within DAOs would fundamentally conflict with their intended autonomous operational model and could undermine their functionality and efficiency."
"it remains assertable, within the existing legal regime, that classifying DAO as a JSC is not feasible de lege lata neither under Turkish Law nor German Law."
"These findings carry significant implications for the classification of DAO tokens as securities"
"to elucidate the lived experiences and ethical visions of DAO participants in China"
"The Evidence Layer is the foundation for making scientific knowledge usable in the field"
"the potential value of new organizational forms cannot be understood without a firm grounding in the efficiencies (and equities) that existing legacy systems have provided"
"This automated legal protection is provided to simplify the cold-start problem for many DAOs, that want some level of bare legal protection to even figure out what they are doing without incurring liability"
"Is the investment in these projects ROI-positive — meaning, does the additional transaction volume generated (multiplied by the Superchain sequencer fees) exceed the amount of funding received?"
"The question isn't whether fees exceed funding, but whether funding changed behavior meaningfully."
"Möltner is working with a cross-sector group called GenoDigital to lobby the government to modernise cooperative law, calling for small but critical changes in policy to allow for digital membership, coop formation, and registration"
"The following year, the Hungarian and Dutch experiments were put on hold, and the Netherlands foundation formally wound down in 2022. In the same year, Smart France was put into receivership for a brief period while the cooperative reorganised its affairs, which had seen a 26% decrease in revenue"
"We consider a project successful only when our work improves the lives of others."
"more decentralized governance (e.g., a higher number of voters) has positive effects (e.g., an increase in trading volume), while higher Gini can negatively affect MKR and DAI"
"the potential bidder chooses the business plan (V*, C*) that results in ψ = ψ*, the largest possible social surplus"
"Bidding intensity and the viability of the mechanism itself depend on capital market adequacy, the depth and development of capital markets."
"The second kind of regulation can be described as a joint and several responsibility approach. Some party or set of parties must be responsible for meeting traditional regulatory requirements, and in the absence of a designated party or parties, a wide variety of participants are effectively at risk of being held responsible"
"DAOs are best suited for long-term, ongoing projects that require high levels of transparency, member engagement, and automated processes"
"Considering that the DAO Model Law[34], as referenced in Section II-C, prescribes specific rules for documentation, we have consolidated the documentation requirements from the DAO Model Law into the following six rules."
"how to create governance that is both decentralized and efficient enough to be competitive with centralized alternatives."
"Governance issues that directly or indirectly impact voting power distribution, participation, and controversy include legal ambiguities, rigidity, and voting misconduct... Beyond operational concerns, the long-term sustainability and adoption of these governance models remain persistent challenges."
"Has Legal Entity: Specifies whether a DAO has an underlying legal structure."
"future DAO designs may adopt hybrid forms, balancing legal interoperability with permissionless organizations"
"the Sponsor [iShares Delaware Trust Sponsor LLC] will, if permitted by the terms of the Trust Agreement, use its discretion to determine which network should be considered the appropriate network for the Trust’s purposes"
"considering (correctly) DAOs as infrastructure rather than enterprises could be a solution to find a way to regulate these entities"
"a potential investor deciding to interact with a Protocol DAO that has not received the authorization label will bear full risk and responsibility of his acts"
"Nabben, K.: Decentralised Autonomous Organisations (DAOs) as Data Trusts: A general-purpose data governance framework for decentralised data ownership, storage, and utilisation."
"the creation of robust marketing and product design departments is essential. These departments should develop effective product and content strategies that align with the principles of each DAO project."
"a framework for evaluating the business value of DAOs from an open systems perspective"
"our method leverages LLM to verify whether the provided DAO documentation aligns with the requirements outlined in the DAO model laws."
"In 2021, Wyoming became the first U.S. state to legally recognize DAOs... DAO can obtain legal personhood, meaning they can enter contracts, own assets, and benefit from limited liability protections"
"issues around legal status and liability remain unresolved... the emergence of DAO-recognized legal entities in jurisdictions such as the Marshall Islands, Wyoming, and Liechtenstein reflects a growing willingness to provide legal scaffolding"
"communities—such as academic societies, open-source software groups, churches, or artistic collectives—pursue non-financial goals"
"Applied to artificial intelligence, community currencies offer a way to embed social context into neural networks"
"The implications extend beyond provisioning to reimagining credit and insurance systems; reframing policy debates about trade and security (or speech and censorship); and even updating regulatory regimes designed in the analogue age for greater coherence and legitimacy in the digital age."
5
0
Strengthen accountability, transparency, treasury oversight, funding evaluation, and outcome tracking
0.86
Evidence 84 137 2 44
"“DAOs and other organizations often fall back on highly centralized decision-making that is intransparent and potentially unfair.”"
"“(ii) investment rules in DAO treasuries being unclear and the source of contention (iii) foundations overriding DAO member votes (iv) self-dealing and quid-pro-quo handouts of DAO treasury funds”"
"“impact reporting... compliance and verification and being able to document... we've only really looked at it narrowly through the lens of finances.”"
"“we're building Green Goods, which is a impact reporting platform, built on... Arbitrum... supports... attest to work on chain... bundle that work into hypercerts as impact certificates.”"
"“with those hypercerts, have a capital formation mechanism... where funders could put funds into the vault.”"
""Confidentiality vs transparency. Most governance proposals are usually not detailed or contextual enough because adding all the details may compromise or hand product features, trade secrets etc.""
""Or some decisions are shrouded in confidentiality agreements (mostly for good reasons) but this creates a problem regarding transparency.""
""And poses the question of if I am voting for a decision which I just have little or half context, then what really am I voting for?""
""Ownership tokens, research on attention economy (how to capture the right audience in a space or world of short attention span), confidentiality and transparency intersection research, providing as much information as legally possible to better inform the right audience""
"More effective treasury management and capital allocation"
"Lack of clear processes for capital allocaiton decisoin making, lack of treasurey management planning and strategy, lack of effective capital allocation planning/KPIs/performance monitoring and curation"
"Unsusintable treasury spending versus inflows, lack of return on capital investments"
"Evidence driven treasury policy and management, results focused capital allocation strategy"
""The problem is not that information is unavailable. It is that governance data is fragmented across forums, Snapshot votes, onchain transactions, Discord discussions, and offchain signaling platforms.""
""To form a coherent view of governance health, participation quality, proposal velocity, delegate concentration, or emerging conflicts requires significant manual synthesis.""
""One approach to addressing this challenge is the development of AI-assisted governance intelligence agents that move beyond raw data aggregation toward contextual synthesis.""
""There is still limited infrastructure that meaningfully integrates qualitative governance judgment with quantitative onchain signals.""
""Without a coherent, cross-DAO view, emerging patterns such as delegate concentration, treasury exposure correlations, or repeated governance design flaws across ecosystems are difficult to detect early.""
"“Treasury spending as monetary policy without price discovery: communities treat the treasury like a grant program, but it’s effectively inflation-funded procurement”"
"“Funding norms get anchored by precedent (‘we paid X before, so X is fair’), which quietly turns one-off approvals into long-term entitlements”"
"“Recurring proposals with ambiguous scopes, rising ‘market rate’ claims that don’t map to measurable outcomes, and retroactive asks that create moral hazard”"
"“Accountability without institutional memory: chains have perfect data, but governance often has amnesia”"
"“the system can’t reliably answer ‘what did we buy, did it work, and what did it cost us over time?’”"
"“debates restart from zero each cycle, and ‘reputation’ becomes storytelling rather than a verified track record”"
"“Move from ‘funding as applause’ to procurement as governance: require a pre-flight packet (scope, milestones, acceptance criteria, maintenance expectations, rate justification)”"
"“normalize ‘no technical review = no funding’ for technical work”"
""Critical maintainers need continued funding, this is non-negotiable.""
""The process change we're exploring is to make available additional funding that can only be spent on external contributors and the onboarding of co-maintainers""
""El dinero no va al valor, y el valor no va al dinero.""
""Muchas DAOs tiene programas de grants y esperan a que aparezcan great builders, pero acaban apareciendo equipos y proposals optimizadas para recibir la grant y no tanto para los resultados""
""Academic research found that only around 40% of grant-funded projects remained active one year after receiving funding.""
""According to @CornaroLabs, only 2.4% of EU-funded blockchain projects reach a technical demonstrator or pilot.""
""When grant systems reward documentation over deployment, outcomes follow incentives, regardless of the tech.""
""Para el tema de dinero-valor. Mas scouting como el mundo tradicional.""
""los procesos de grants generan selección adversa: atraen a equipos optimizados para navegar gobernanza, no necesariamente a los mejores builders""
""Sin incorporar intermediarios activos (scouting, curaduría, delegados profesionales) y asumir estas restricciones humanas, los programas seguirán financiando legibilidad y proceso más que impacto real.""
"“Given a problem domain (eg. Delegations) how vendors pitch ideas, how the selection happens is oqpaque.”"
"“Since the identification of the problem and selection of the solution there has been zero communication as to the implementation”"
"“As a result we have minimal clarity on how the core problem is actually being solved.”"
"“I would much rather see RFPs from several vendors; Top three are awarded 10-15k each; and then after proper research. The winning proposal is awarded a 70k budget.”"
"“Currently we see DAOs paying a premium with zero competition or sane evaluation of the tender process.”"
"“Currently, most DAOs operate with little direction, i.e not moving towards a common goal.”"
"“How are we evaluating if the projects we are spending money on contribute to that objective?”"
"“I've seen projects that have been funded with 1M plus funding with zero oversight that does not contribute back to the DAOs core business model.”"
""250,000 USDC that had been transferred to SpruceID ... sat idle in SpruceID's wallet for over a year""
""the DAO's financial reports were fragmented across various sources""
""This pressure helped validate the community concern and led to proposals for a centralized financial dashboard RFP""
""if an active proposal is put forward to dissolve a working group, all working group funds, including outgoing payments, must be immediately frozen""
""they should have on chain guarantees for the claims they have over infrastructure and more specifically over the capital flows""
""the governance process got overly fixated on distributing grants as opposed to growing the adoption of the underlying stack and capturing value back into the business""
""a fundraising mechanism that releases or makes funds available to the team, based on milestones being met is a big one""
""the capital would become available to the teams based on meeting specific milestones""
""Foundation is taking on 'DAO operations' work - i..e. management of the treasury without any visibility or current transparency of the spend.""
""Just 'approve this budget and trust us'.""
""Not just the Grants committee, but marketing, audits, treasury/expenses management, proposal project management and DIP program management.""
"“value of data accrues to private companies”"
""Protocols lack structured systems to retain and transmit governance decisions across contributor turnover cycles.""
""This causes repeated mistakes, redundant proposals, and erosion of institutional knowledge.""
""The technical infrastructure exists: we have on-chain voting records, forum archives, Discord logs, GitHub repos. The raw data is technically stored. The problem is that this data is cognitively inaccessible without structured interpretation.""
""What's missing is the organizational practice layer - no one is responsible for synthesis, there are no standardized processes for outcome reviews or retrospectives, and there's no metadata framework that makes historical decisions legible to new participants.""
""In the GMS framework I'm developing, I call this the Proposal Lifecycle Metadata problem.""
""You can technically find a past proposal in an explorer, but you can't easily answer: Who authored it? What problem was it trying to solve? How did it evolve during discussion? What happened after implementation? Were there unintended consequences?""
""So the technical infrastructure needs to be paired with structured organizational roles - governance working groups responsible for documentation, outcome review processes at defined intervals, synthesis reports.""
""Proposal Lifecycle Metadata (PLM): Structured tagging for proposals that captures authorship, problem statement, discussion evolution, and implementation status.""
""Outcome Review Anchors (ORA): Time-based (30/60/90 day) and event-based checkpoints that evaluate whether proposals achieved their intended results and surface unintended consequences.""
""Governance Health Index (GHI): A diagnostic framework I developed that assesses five dimensions - Inclusiveness, Transparency, Feedback Loops, Accountability, and Coordination Infrastructure.""
""In the GMS framework I'm developing, I call this the Proposal Lifecycle Metadata problem.""
""In the terms of governance security, solutions to surface risk and allow for easier reading of complex blockchain data is essential too""
"Governance Around Priorities that can be measured ( eg: Fund Growth Projects, Ecosystem Needs)"
"“evaluation/accountability councils of agents (eg using GenLayer) to bring down the very high cost of evaluation, which is a key input into accountability mechanisms”"
"Using Frontier AI as a means to screen governance proposals and provide feedback"
"Applying tools from econometrics/ econ policy evaluation, and web2 experimentation eg A/B testing could be a great start"
""Contributor value is typically better tracked implicitly""
""Having to play the politics game in order to get funding approval, rather than being evaluated against an outcome""
"## Zero accountablity"
"Playing Oprah: "everyone gets funded""
"existing programs renewed with no reflection"
"minimal accountability structures"
"lack of insights into value delivered by contributors"
"impediments to foundation management and transparency"
"## lack of transparency into contributor renumeration"
""Impact Evaluation still not figured out""
"Formal retros so we can iteratively improve"
"More robust accountability (e.g. GAO for a DAO)"
"Support projects that improve governance and transparency by increasing visibility on core protocol change proposals, especially for consensus-layer updates."
"Design and funding for a transparent, accountable multisig-based voting system to control emergency abort of upgrades, with regularly reviewed and opt-in client membership."
"Evaluating | reflecting on current conditions ... Actuating | taking a decision and making it happen, tracking status"
"perpetual administrative transparency"
"It also faced real adversarial pressure (Sybil attacks), and the system evolved defenses rather than collapsing into “welp, guess governance is impossible.”"
"Because it has a measurable output: funding allocations people can evaluate."
"Makes capital flows legible and comparable so strategy, accountability, and learning can compound across cycles."
"Treasury Management: RFP approach rather than permanent council - Professional service providers selected competitively - Accountability council oversight rather than dedicated treasury council"
"Grounding in Evidence: All conclusions traceable to specific participant inputs"
"There is an accessible, transparent process for amending or changing the constitution... we recommend a tool that enables low-friction amendments alongside a transparent record."
"Levels 5-6 - medium influence → decision making rights should be restricted to select parties with a proven track record, and accountability mechanisms should be established to balance power"
"Power can be held accountable only when it is transparent."
"More objective economic frameworks should be developed to reduce self-preservation tendencies that accrue value for the DAO at the expense of the protocol. This principle is usually lacking in DAO treasury allocation strategies, which are usually managed subjectively"
"To the extent possible, work should be valued based on output/impact, and should not be valued on hourly, or other, inputs"
"there is a tendency to fund projects whose actual results are unclear, or whose effectiveness lacks convincing evidence. This tendency leads to the depletion of DAO funds, so funding mechanisms should be more effective and efficient."
"to truly assess the effectiveness of an intervention, we must prioritize outcomes (e.g., behavioral changes among participants after an event), which require more complex data collection and analysis."
"This dashboard brings those problems, the projects addressing them, and the distribution of capital into one place. It helps round operators, donors, and ecosystem stewards see how funding decisions align with the strategic priorities of the Ethereum community."
"They also create a reputation system where you could monitor your stewards through cards that would monitor their voting behavior."
"feedback... is really how this loops back around because these are not one-shot games... Without a feedback process that gives rise to a continued injection of attention from the various stakeholders... it becomes kind of a zombie."
"DAOs have already emerged to allocate funds for community development purposes that are broadly defined to a point where clear satisfaction of a funding purpose is considerably harder to objectively verify"
"Maximize accountability: Those impacted by a decision should be able to veto or override a decision that directly impacts them."
"A public wallet address serves as your immutable digital identity that gets registered, receives funds, and maintains reputation."
"Ecological hypercerts are blockchain-based impact certificates that enforce a structured data standard through three key components: identity (who made the impact), formalized claims (what impact was achieved), and provided evidence (proof of impact)."
"Ecological hypercerts are blockchain-based impact certificates that enforce a structured data standard through three key components: identity (who made the impact), formalized claims (what impact was achieved), and provided evidence (proof of impact). This framework creates an immutable record that links to both provided evidence and public datasets."
"Data provenance layer to ensure transparency and ownership of shared knowledge"
"each proposal Id also generates a real-time svg to track proposal status via ERC6909 URI"
"This work is part of a broader research initiative to advance impact measurement for public goods funding. All code, data, and methodology are shared openly to invite feedback, collaboration, and collective learning about what works (and what doesn't) in measuring retroactive funding effectiveness."
"Any signal (if present) cannot be distinguished from background noise with our current approach"
"Future iterations could incorporate these holistic ecosystem metrics to refine the definition of positive impact, construct a transparent composite impact index, and improve ROI assessment"
"Precise profit shares are displayed on each product page—breaking down percentages received by the artisan, shipping costs, and Anou’s cost share."
"Financial transparency is a vital aspect of Anou’s operations and success."
"Anou’s digital platform facilitates this by automatically sending multiple text messages once a sale has been made to confirm and ensure that the funds are received by the maker of the product, not an intermediary."
"This analysis looks in detail at three questions: 1. Which tools got funded? 2. What measurable impact have those tools had on the Superchain? 3. Has the mission been an effective use of funds?"
"Rewards are determined using public metrics and an open source algorithm maintained in this GitHub repo. The strategy for the algorithm was voted on by citizens at the start of the mission and shaped over the course of the mission by community feedback."
"Rewards are determined using public metrics and an open source algorithm maintained in this GitHub repo."
"This analysis looks in detail at three questions: 1. Which onchain builders got funded? 2. What measurable impact have they had on the Superchain? 3. Has the mission been an effective use of funds?"
"On a six-month lookback, the program is just above breakeven in terms of revenue in and funding out, and nearly twice as efficient as Retro Funding 4."
"The board of directors, as the primary accountability mechanism for public companies, was cited as a significant source of failure of corporate governance in many of our expert interviews (i.e. failing to hold management accountable). Capital Allocation 2.0 will introduce additional accountability mechanisms to ensure management “can’t be evil.”"
"Over the next few months, the Foundation will propose updates to allow the Collective to sustainably fund OP Labs, while governance ensures accountability for the achievement of goals and targets via a set of veto rights over capital allocation."
"Preserving Value: We are pausing these systems to preserve treasury value and focus our resources. By stopping dilutive emissions and pausing the scoring of inactive governance, we ensure every resource is purposely used."
"Execution of Strategic Treasury Operation: This week, Obol successfully acquired 1,706,309 OBOL from the open market using protocol fees."
"Foundation Budget Approvals, which are governed jointly by both houses."
"Another possible solution is to make IP authors’ addresses publicly available so that users can detect suspicious activities of developers."
"Uniswap’s governance, for example, somewhat controversially voted to create a lobbying group called the “DeFi Education Fund” and allocated $20 million of treasury funds to it"
"Control parties that fail to achieve the token target price forfeit a portion or all of a substantial value deposit to the other token holders"
"If the token value does not reach S, then, as discussed below, transfer of part or all of the value deposit to the other token holders will ensure that they are at least as well off as if the value S was realized."
"Thus, the value deposit combined with the operation of the value deposit forfeit function transforms the bidder’s value claim into a commitment to deliver the promised increase in token value to the other token holders."
"The basic auction mechanism requires that the bidder report any toehold position as part of the bid for two reasons. First, an accurate report of the toehold is necessary for the mechanism to work as intended."
"A Success Termination occurs if the token price reaches at least S on a sustained basis. “Sustained basis” must be defined in a manner that is code feasible. For example, the criterion might require that the token price, as determined by some group of price oracles maintained by the DAO, averages at least S for 30 days and sustains a value at or above S consecutively for at least 10 of those days."
"The most pernicious example of a treasury raid is one in which a party gains control of the DAO and then transfers the entire treasury to itself by voting positively on a suitable proposal."
"Finally, disclosure of the identity of the guiding parties of an enterprise is a major goal of securities regulation. The diffusion of control in DAOs tends to make identification of managing parties and elucidation of information about them difficult if not impossible. In contrast, by the operation of the mechanism, the identity of the managing parties will be evident, at least during control periods."
"Because the control party has an interest in the outcome of the estimation, an estimation method would need to be hard-coded at the constitutional level of the DAO to avoid manipulation by the control party."
"Non-algorithmic off-chain voting governance of decision-making leads to a substantial discount in DAO value."
"On-chain voting aligns with the principles of immutable and transparent governance found in digital commons, ensuring accountability in resource management."
"The empirical main finding is that off-chain voting has a significantly negative effect on DAO valuation, plausibly mirroring potential transparency issues associated with the uncertainty with which core DAO team members will implement the DAO community’s collective decision."
"Our evidence suggests that DAOs lose much of the transparency and automation that defines blockchain-based governance when voting is executed off-chain, generating uncertainty among tokenholders and potential backers."
"Specifically, successful DAOs should feature transparent and enforceable on-chain voting to honor DAOs’ autonomy promise"
"While it is true that the DeFi space is extremely transparent in the sense that almost all data is available on-chain, it is very cumbersome to collect the data and prepare it in a digestible form."
"complex wrapping structures introduce governance risks, undermine transparency"
"The analysis suggest that DAOs may enable new forms of participation and more transparent procedures"
"Transparency is a core feature, with all decisions and transactions recorded on a blockchain or similar open system, fostering trust among participants and reducing the need for external oversight"
"all transactions logged onto the blockchain for transparency. Regular financial audits and blockchain-based reporting tools will ensure accountability and security."
"Declaration of conflicting interest The authors declared no potential conflicts of interest ... Funding statement This study was supported by ‘Digitale Verwaltung Schweiz (DVS)’ [grant number IN 16]."
"Our findings highlight the central role of contributors across a spectrum of DAOs... Our research also offers important empirical insights pertinent to ongoing regulatory activities aimed at increasing transparency to DAO governance frameworks."
"Beyond shedding light on centralization tendencies within DAO governance structures, our findings demonstrate that contributors possess the capability to effectively steer the direction of DAOs. These insights have significant implications regarding accountability."
"This is relevant for resolving questions of accountability, as vested users and large governance token holders may be considered members of a legally recognized entity and therefore responsible for the underlying dApp."
"These DAO spaces leave doubts about the reliability of the reported values. Thus, we selected only 357 out of 367 DAOs where all votes have been fully validated."
"Treasury and Asset Management (TAM) - Oversee the DAO's own treasury and assets. This encompasses decisions concerning the security, investment, diversification, and financial reporting of the DAO’s own assets"
"Moreover, DAOs can also be manipulated by the developers... the developer illegally transferred over 1 million locked tokens from the token contract to swap for over 265 thousand dollars, resulting in a 99% drop in the token value."
"it’s vital that the DAO present this information in the transparent, publicly accessible document. The absence of such transparency may erode members’ trust, thereby discouraging their active participation in DAO governance."
"Furthermore, they should provide complete documentation to aid members in participating in the governance process."
"Governance decisions are logged immutably on the blockchain for transparency and accountability"
"Blockchain-based audit trails record every AI agent’s decision, input, and outcome in immutable blocks."
"All governance actions—including the approval of high-risk AI agents, the adjustment of compliance thresholds, or the revocation of non-compliant systems—are permanently recorded on the blockchain, creating an immutable, transparent audit trail that fosters trust and accountability."
"ETHOS operationalizes these principles through dynamic compliance tools such as blockchain-based audit trails and privacy-preserving technologies like Zero-Knowledge Proofs (ZKPs)"
"The second category pertains to financial decisions, where DAO members propose initiatives requiring funding from the protocol’s treasury"
"The system records voting results on the InterPlanetary File System (IPFS) and immutably stores only the final results—not individual votes—on the Ethereum blockchain, ensuring verifiability and reducing the risk of disputes."
"Token holders who prioritize decentralization should carefully investigate delegate affiliations"
"Anyone can inspect these wallets and respective transaction hashes on any Ethereum explorer like etherscan.io"
"we develop a set of empirically grounded KPIs spanning social, economic, and procedural dimensions of DAO governance... including voting activity, treasury management, automation, and distribution of power"
"DAOs with strong participation but weaker financial capacity may need to diversify treasury structures or enhance economic sustainability mechanisms."
"Bidders submit deposits that guarantee performance and that will be slashed with compensatory payments to the other token holders if the DAO declines in value during the control period."
"In September 2023, the exit from the DAO by a substantial share of its members led to a loss of (at the time) approximately $27 million."
"Intuitively, introducing spending into the model will make forks less likely as the treasury shrinks and incentives to participate for arbitrageurs are reduced."
"Given the scale of resources involved, the governance structure of the funding process plays a crucial role in ensuring fair and effective allocation."
"To assess how well each voting rule reflects the true distribution of voter preferences, we compute the ℓ1 distance between the final allocation produced by a voting rule and a benchmark reference distribution."
"Proposal Process is fully Public Yes (66) No (6)"
"Treasury is Public Yes – No"
"many of the proposals that go before its token-holders, and particularly its Stewards, require the comprehension of significant context in order to make informed decisions. Proposals may represent funding allocations for projects or ongoing activities that are only part of a larger budgetary picture, or treasury-management decisions that would normally be the purview of financial professionals."
"The GitcoinDAO scorecard system makes certain information accessible in order to ease decision-making but introduces assumptions regarding what to measure and how to measure it."
"Real-world experiments such as the Optimism Retroactive Public Goods Funding initiative provide insights into improving DAO governance by applying computational social choice methods that enhance fairness and strategyproofness in funding allocations"
"Contributors should be able to trace how their contributions are valued, weighted, and rewarded."
"Contribution systems should have open valuation models that allow for audits and adjustments."
"Transparency Information related to the organization can be accessed by all community members"
"They inherit key democratic principles such as procedural transparency and immutable records from being based on blockchain technology."
"on-chain governance of DAOs creates an immutable record, enabling after-the-fact accountability mechanisms of voter fraud detection and thus disincentivising corruption beforehand"
"ensuring transparency and trust through blockchain execution"
"RetroPGF distributes funds ex post, rewarding projects based on their verified impact rather than projected outcomes."
"To evaluate voting rules in the Retroactive Project Funding framework, we consider key theoretical properties and performance metrics."
"opacity regarding who is legally responsible for contract breaches or securities violations compounds agency problems"
"They also cannot, on their own, diagnose or measure latent power asymmetries when decision-making shifts from public, on-chain discussions to private negotiations among influential token holders"
"Additionally, DAOs serve as a mechanism for transparency and accountability [2]; by voting on proposed changes and maintaining an open record of decisions, DAOs promote a level of trust and reliability rarely seen in traditional financial institutions."
"AI can monitor actions and transactions within a DAO in real time, reporting suspicious or noncompliant activities directly on the blockchain. This allows for continuous and transparent monitoring"
"This technology introduces a novel governance paradigm characterised by the progressive elimination of intermediaries... where technological mechanisms serve as infrastructure and regulatory frameworks enabling transparency."
"This measure enhances the ability of EU tax authorities to monitor and verify crypto-asset revenues and their tax implications."
"the Coalition of Automated Legal Applications (COALA), through its Model Law for Decentralised Autonomous Organisations (DAO), proposed a taxation provision that upholds the principle of transparency."
"All governance decisions are recorded immutably on-chain, providing a complete audit trail and fostering trust among participants."
"The platform’s core smart contracts manage DAO creation, membership, proposal submission, voting, and treasury operations."
"Performance The outputs of governance lead to results that achieve the DAO’s strategic goals... Grant allocations generate positive ROI Treasury management strategies generate positive returns"
"Credible Neutrality... Increases legitimacy via high credible neutrality Onchain execution Public voting Independently verifiable outcomes Third party watchdogs"
"The coup drained nearly $500,000 tokens from the Build Finance DAO... The instances wherein an attacker acquires sufficient voting power to siphon treasury funds are not anecdotal"
"DAO is an entity that is collaboratively managed by on-chain participants... enabling on-chain rules and activities to be transparent and traceable."
"The snapshot technique is to record the in-time token-holding status of all accounts and wallets on-chain at a specific block height... Owing to the benefits of transparency and traceability"
"treasury oversight (TokenTerminal, Zapper)"
"Embracing transparency by making all decisions and transactions publicly visible can prevent any hidden centralization from occurring."
"There are also practical values that are instrumental to achieving these two values, such as transparency, which helps ensure and defend equal empowerment."
"the transparency, community-oriented governance, and the role of smart contracts in ensuring that decisions and operations are visible and collectively controlled"
"there is a growing focus on developing strategies to strengthen the integrity and transparency of DAOs"
"As for Proposals, over 90% of the examined proposals (32,500) fail to provide consistent descriptions and code for their members, highlighting a significant gap in transparency within the DAO governance process."
"Thus, it is hard for members to classify whether these functions are potentially backdoors or designated for guardians to protect the governance process."
"Additionally, they should provide complete documentation to facilitate member participation in the governance process."
"MiCA emphasizes consumer protection and operational transparency"
"users’ actions are more easily tracked and audited by other users"
"These features make it possible to mobilize capital into hyperlocal contexts... without friction, while ensuring traceability and transparency in how funds and impact circulate."
"The author declares no commercial or financial relationships that could be construed as a potential conflict of interest. The author previously collaborated with Hypha as an Impact Ecosystem Builder over two years ago and is currently engaged in a separate ecosystemic finance pilot with the organisation as part of doctoral research. These relationships did not influence the design, analysis, or reporting of this case study."
"The GHAIADAO treasury must have collateral equivalent to the value of the number of NORs distributed in ORs."
"Andreas Theodorou, Robert H Wortham, and Joanna J Bryson. Designing and implementing transparency for realtime inspection of autonomous robots. Connection Science, 29(3):230–241, 2017."
"Guy R Vishnia and Gareth W Peters. Auditchain: A trading audit platform over blockchain. Frontiers in Blockchain, 3:9, 2020."
"For example, attackers could vote to pay themselves a large dividend from the DAO’s treasury."
"three methods for improvement can be proposed: (1) Quadratic voting, (2) Small group decision-making mechanisms, and (3) Standardized information disclosure requirements and guidance."
"Such rules are designed to bolster transparency and accountability by ensuring token holders are equipped with precise and pertinent information. This includes: (1) General disclosure provisions... (2) A mandate for proponents to disclose any potential conflicts of interest; (3) An anti-fraud provision prohibiting the use of false or misleading statements"
"This model enhances transparency while simultaneously raising the cost of influence in lobbying—two essential pillars of accountability."
"A history of exchanges not only exposes their priorities and the lobbyists they engage with but also situates them within a broader social and economic network."
"Treasury and incentive systems are designed to embed reciprocity. The City Hall treasury is replenished each quarter following Assembly approval, and all inflows and outflows remain transparent to members."
"principles-based approaches emphasizing transparency and participant protection are likely to be more effective than rigid, prescriptive rules for DAO governance."
"When governance is external, it cannot constrain outcomes at the moment they are produced. It can observe, explain, and react, but it cannot decide. At scale, observation without constraint is not governance. It is commentary."
"An explanation that cannot trigger correction is rhetorical. An appeal that cannot suspend execution is symbolic. A report that arrives after harm has compounded documents failure without preventing it."
"querying “What concerns do participants have about accountability structures?” surfaced consistent worry about “accountability theater”, i.e. appearing rigorous without actual oversight."
"If each digital public good can build a causal model, the opportunity for Pro Funding will emerge. By designing projects in an evidence-based manner, it will likely become easier to secure validity, accountability, and persuasion from communities for prospectively raising funds."
"Decisions about logging granularity determine whether actions can be reconstructed and challenged. Fine grained logs preserve the possibility of contestation. Coarse logs collapse decision histories into aggregates that foreclose meaningful appeal."
"Transparency is necessary for governance, but it is not sufficient. In many cases, it functions as a substitute for power rather than its expression."
"By combining automated verification with community-driven governance, these new funding mechanisms reduce operational friction while increasing transparency and trust."
"The analysis reveals what we need to measure impact better: longer time horizons, richer counterfactuals, and metrics beyond transaction counts."
"A more holistic ROI view should consider: Total Value Locked (TVL) growth across the ecosystem; Developer mindshare and talent retention; Market share vs competing L2 ecosystems; Protocol innovation and technical improvements; User acquisition and retention at the ecosystem level; Long-term sustainability and resilience of public goods infrastructure"
"The organization has also successfully raised $92 million USD (value at time of donation) for its members, demonstrating its ability to attract support for core contributors."
"We believe this preliminary analysis from Season 7 shows that Retro Funding can move the needle. However, evaluating the effectiveness of the program still relies on proxy metrics and anecdotal feedback. To tighten the feedback loop, we need to close a few data blindspots, establish more precise outcome metrics, and design experiments that validate some of the key hypotheses about why the program exists in the first place."
"Track these indicators over a longer horizon... Add retention metrics... Collect structured qualitative feedback."
"We also prioritize open source and open science in our engagements, so that our work can be as broadly beneficial as possible."
"Designing for trust in the agentic era makes trust experience design (TXD) inseparable from design practice... TXD is structured across three layers: (1) trust evidence (cryptographic attestations, tamper-evident logs, explainable reasoning trails)"
"Snapshot enables anyone to view the outcome of the proposals in real-time. This transparency may allow powerful voters to decide whether their participation is necessary based on their interests, potentially leading to strategic use of their power."
"we identify voters whose identity is publicly available, the top ten voters that participate in most polls, the top ten voters with the largest total votes and the top ten voters that have the largest votes in a single poll."
"blockchain-based governance systems are not always entirely transparent, and that the power within them can be more centralized than it initially perceived"
"The DAO Code may refund part or all of the value deposit when the bidder’s control comes to an end, with the rest forfeited and paid to the other token holders."
"Finally, note that if deterrence fails and value destruction is successful, forfeiture of the deposits fully compensates the token holders other than the control party."
"At least during control periods, there is a clear party who can coordinate and interact with regulators, parallel to the managers of a traditional corporation."
"It must comply with Swiss association laws, necessitating the establishment of a compliance team to oversee financial reporting, ensure decision-making transparency, update the association’s statutes as required, and manage assets responsibly."
"In addition to the categorization, we prompted the LLM to check if the personal wealth of the voter is affected, come up with its own categorization, provide the perceived risk for the dao, extract the total cost and revenue"
"Such testing would provide valuable insights for policymakers refining regulations, developers optimizing AI system designs, and end users benefiting from safer, more transparent AI technologies."
"Treasury Size denotes the total assets held in smart contracts under DAO control. Larger treasuries allow for sustained contributor rewards, protocol development, and other activities."
"“The Hidden Shortcomings of (D)AOs – An Empirical Study of On-Chain Governance”"
"The effect of setting a tax is similar to the effect of a higher κ or lower initial treasury: it reduces the redemption value and, thereby, the willingness to pay by arbitrageurs."
"It is immediately clear that depending on the expected level of spending, forks can be prevented entirely by, for example, committing to spend the entire treasury in each period."
"Selection Bias: Data availability influenced DAO selection, potentially skewing the sample toward DAOs with more transparent data."
"Alignment with ground truth measures the deviation from an objective allocation x∗"
"Governance Application is fully Public: Here, we refer to the accessibility of the governance process. If the entire process is visible outside without any barriers, we use the characteristic Yes."
"Treasury is Public: This dimension, with flag characteristics Yes and No, states if anyone can view the balance and content of the DAO Treasury at any time."
"Transparent access to the information concerning the organization is made available via various online and offline channels"
"Bayesian truth serum methods [19, 20] may further help validate whether a rule meaningfully uncovers ground truth."
"Article 20: Remedy, Procedure, and the Statute of Limitation 1. Pursuant to Article 18 and Article 19, if more than one individual is obliged to indemnify the same damage, they shall be jointly and severally liable."
"it would be impossible to identify an individual with signature authority to fulfil tax compliance obligations, such as submitting tax returns or making tax payments. These obligations must be fulfilled anonymously and automatically, a requirement that current tax systems are not equipped to handle."
"Smart contracts could automate tax payments directly at the transactional level, enhancing efficiency and compliance."
"A Bounties contract escrows ERC-20 rewards per initiative."
"DAO governance should dictate any progress updates for the project source code or other initiatives in a fully transparent way via public communication channels, e.g., Discord and Slack."
"Community members can also verify each other’s contributions through on-chain records, ensuring transparency in governance."
"Participants with an OR also vote for the Control Council, consisting of seven (7) members whose purpose is to ensure that there are no excesses on the part of the Governance Council."
"[138] Timnit Gebru, Jamie Morgenstern, Briana Vecchione, Jennifer Wortman Vaughan, Hanna Wallach, Hal Daumé Iii, and Kate Crawford. Datasheets for datasets."
"[174] Margaret Mitchell, Simone Wu, Andrew Zaldivar, Parker Barnes, Lucy Vasserman, Ben Hutchinson, Elena Spitzer, Inioluwa Deborah Raji, and Timnit Gebru. Model cards for model reporting."
"[402] Ben Shneiderman. The dangers of faulty, biased, or malicious algorithms requires independent oversight."
"C. Standardized Information Disclosure Requirements and Guidance for Enhancing Voter Participation and DAO Governance"
"Where full transparency (“all light”) overexposes information and total opacity (“going dark”) stifles cooperation, community currencies offer a balanced alternative: partially light, partially dark"
"AI might help summarize proposals and predict their impacts on performance"
6
0
Develop stronger governance operations, delegation, execution capacity, and modular or layered institutional structures
0.83
Evidence 59 118 4 57
"Developing governance mechanisms such as enforcement committees, contestable control, forking protocols, restaking, and AI-based rule enforcement"
"“enforcement by committees”"
"“mix of elected enforcement committee and external dispute resolution (QGOV)”"
"How to ensure governance remains peer-to-peer (P2P) at the core, while enabling peers to voluntarily group, recursively."
"Every DAO, every chat group (such as on Telegram or Discord), every HOA, every club, every corporation is controlled by a tiny council, while the users can only vote on high level subjects, and never gain real ownership, and are certainly never allowed to secede (split into subgroups)."
"The process could be managed by a DAO which sets standards on juror requirements."
"DAO vets a pool of qualified jurors for specific courts dedicated to specific subject matters."
""Enable multi-house and semi-permissionless governance models""
""It's it's, it's an attestation based framework that basically abandons the concept of on chain execution for a moment""
""it pulls apart the weight, the voting power, and the and the identity""
""it decouples those things and just records this identity voted this way""
"“Aragon is working on interesting approaches - basically, subsidiarity, delegation of decisions”"
"a DAO which seeks to emulate an online corporation may reduce voter fatigue by electing managers for each department and then delegating responsibility for certain areas to those managers."
"DAO governance is centralised, opaque and very noisy."
"I put these problems together because, in my opinion, they are symptoms of the same problem: a lack of governance structure."
"There are no roles with designated rights and/or responsibilities, no proper ways to elect or hold representatives to account, etc."
"Examples are the bicameral system that the Optimism Collective designed, Lido's Dual Governance structure, Aave when it comes to creating councils, Aragon OSx and Zodiac when it comes to separating powers in governance."
"This implies designing a governance protocol that allows communities to create their own roles with specialised rights and responsibilities, design some type of filters / throttles to avoid being overwhelmed by noise, and define how different roles check each others to ensure accountability."
"We need a governance protocol that provides a simple but general framework for institutional governance design."
""delegates usually are voluntary or don't have a formal role, they're less obliged and or motivated to stay long-term.""
"“Often times, there's a lack of formal resonsilibities and roles, missing accountability for previous decisions, delegates are not neccessrily reliable, there's not that mich structure.”"
"“Sometimes DAOs tend to spend to much time discussing, and not enough time on implementing / executing.”"
"“there's more major issues, like proposals not beeing (fully) executed, announcements not being fulfilled, communication stopping, and / or no consenquences for that.”"
"“The recent dispute in AAVE DAO is an example for unclear responsibilities, coordination dispute.”"
"“In terms of increasing the pool of delegates, there's e.g. delegate programs to train people how to contribute, compensation for delegates, focusing on delegates strategy wise.”"
"“I believe we need to have more organization specialization roles in committees in DAOs to actually run the day-2-day ops of the DAO.”"
"“Not just the Grants committee, but marketing, audits, treasury/expenses management, proposal project management and DIP program management.”"
"“Scroll DAO is working towards this (in a very limited version - phase 1).”"
"“Web3 governance is framed almost entirely as a problem of incentive design for atomized agents, rather than as the joint design of institutions, norms, roles, and sense-making practices.”"
"“Build institutional and constitutional structures that can hold tension”"
"“Structural principles (tensegrity and paradox management) ... multiple decision venues at different speeds, role structures with differentiated mandates, and explicit constitutional space for managing contradictions.”"
"“Social principles (roles, accountability, and graduated escalation) drawing from Ostrom's commons work: clear roles with defined scopes and accountability, graduated conflict resolution pathways, and nested layers of decision-making.”"
"“Gitcoin ... are now investing in a constitution, professional delegates, steward training, and clearer roles and scopes.”"
"“Protocols like Lido and others [are] experimenting with dual or layered governance after discovering that pure token voting produced apathy, whale dominance, and difficulty scaling complex technical decisions.”"
""The challenge is that most of these solutions require sustained organizational commitment rather than one-time technical fixes.""
"Create governance templates with other decision-making models."
"Create clear tiers of decison makers access ( eg: large token holders - security)"
""mapping of phases of gov to tooling - which lead to best outcomes""
"Token-Based DAOs usually want to add voting for some other registry/identity, or adding a second/third "house" for voting."
"Agora has a protocol that sets this up, such that it works with any identity list."
"creating re-delegation systems alongside a ritual of re-delegation (e.g. every 6 months), ideally with some entity having ability to 'call back' delegations"
"A DAO with holacratic governance + accountability based on smart contracts"
"fully agent-enabled organization (to address cost of organizing with central coordinators/orchestrators)"
"“A gov framework of proven, legitimate practices that appeal to risk-averse audiences who don't want governance for the sake of governance”"
"Governance without some kind of structure does not work - see token voting issues; re-centralisation, etc."
"existing programs renewed with no reflection"
"no clear info-sharing channels, or scoped re-election periods, between delegates and voters"
"minimal accountability structures"
"Most DAOs copied gov from other DAOs vs designing for their needs"
"Big focus on "ultimate control" kind of governance, but very little thought goes into "day to day" permissions/ controls"
"Promising solutions (dual governance, optimistic governance, committees, etc) still very bespoke"
"“governance is NOT just about decision-making”"
"“we should also experiment on executional/operational structures”"
"Formal retros so we can iteratively improve"
"More robust accountability (e.g. GAO for a DAO)"
"Pick champions and let them cook"
"optimistic governance as safety net"
""How are daily operations separated?""
""is this a representative democracy?""
"Actuating | taking a decision and making it happen, tracking status"
"Our engineered approach deploys a dual-tier computational infrastructure that elegantly synthesizes immutable cryptographic protocols with adaptive collaborative mechanisms operating beyond the blockchain boundary"
"Governance needs labor markets. If you want accountability, you need roles, metrics, and pay."
"DAO Constitution -> Working Group Mandates -> Steward Execution"
"Roles define who is responsible at each point in the capital lifecycle and how intent and information move between them."
"actionable recommendations for council formation"
"Domains Identified: 7 distinct areas emerged from the clustering exercise"
"CCC3: Better calibrated expectations—goal was organizational design, led to a few councils being proposed an voted on in subsequent voting cycles"
"Reality Injection: Include budget/capacity constraints from the start"
"Some of these smart contracts are quite simple, with only a treasury. Others are more sophisticated, with governance processes such as quadratic voting or conditional timelocks."
"If convex → high expertise required, delegate the decision to a smaller group of experts or derive from data"
"There seems to be an upper limit of ~50 full(ish) time contributors, which should inform the number of Councils that can be supported (~5)"
"Convex decisions should be delegated to smaller groups of experts (Councils or Boards)"
"Leads coordinate, direct, and facilitate the members of their teams. They set up the processes and infrastructure required to allow anyone to step in and contribute effectively."
"Or, we can cut up the existing pizza into 8 more slices, totalling 16 slices (Empower the community to execute elements of work that would otherwise be the core team’s responsibility)"
"If legitimacy is to be preserved in computational societies, governance cannot remain external. It must operate where decisions are made, at the moment they are made, with the ability to constrain, contest, and correct execution itself."
"The research suggests that effective governance systems design information flows for heterogeneous engagement levels."
"In the Gitcoin case study, it was a steward role... and a delegates way."
"some modicum of concentration of authority (and division of distinct sub-authority) strictly dominates total decentralization due to the comparative cost-savings (efficiency) of delegated/representative decision-making"
"Another hallmark constitutional solution to heterogeneity of governance preferences resultant from divergence of shared values surrounds the division of governance authority into overlapping horizontal levels, or parallel vertical systems."
"Subsidiary units, frequently called states or provinces, are commonly granted their own competencies within a larger constitutional order, allowing for tailoring of policy questions to variance in local preferences."
"Subsidiary networks are being designed to reduce the processing load required on the main blockchain network."
""the original constitutional design displays the decentralized design choice of placing the residual authority to legislate with subsidiary units.""
"Instead, we approach each governance question as a decision module with unique properties."
"Nested Systems | Traditional hierarchies linking local to regional"
"The power of a decentralized guild lies in its modular extensibility."
"We’ve discovered that one of the most critical challenges in scaling regenerative governance is establishing sustainable funding mechanisms that support communities through their growth journey."
"we recognized that scaling Ostrom’s principles requires addressing coordination challenges at multiple levels simultaneously"
"The development of both Taina and Polly demonstrates how early versions of regenerative intelligence can operate across different scales and contexts."
"Treat AI as one advisor among many, not as a solo decision-maker."
"Majeur integrates split-delegation (up to 4, optimized) directly. This will allow you to have several, potentially competing delegates who will be more incentivized to vote and perform according to expectations."
"In many ways, they either operate as cooperatives or, at the very least, match the function of cooperatives, such as guilds or unions, in leveraging collective power and labour in order to provide social and economic benefits in their respective ecosystems."
"Artisan leaders are involved in knowledge exchanges with other Anou artisans in order to build financial skills, digital literacy, etc."
"Smart Germany has a four-tiered governance structure"
"She points to an ongoing discussion within Smart Germany as to whether maintaining a larger, Berlin-based cooperative is better than devolving into smaller, more local coops in the long run."
"Add mechanisms to hold OP Labs accountable, including: 1. A legal structure (possibly a DUNA) to allow more voting power to come online and to transfer specific assets and governance powers to the structure onchain 2. A final set of proposal types outlined in the Operating Manual"
"In the coming Seasons, the Collective may implement a Security Council responsible for executing upgrades following the will of governance."
"other key bigrams include the “curation committee” and “revocations committee,” which indicates an effective organizational structure dedicated to managing and facilitating the decisions"
"[‘decentraland’,‘system’,‘delegate’, ‘incentives’,‘squad’,‘land’,‘voting’, ‘events’,‘add’,‘proposals’] Delegation and Incentives"
"MKR holders can be voters and directly choose their options on the Maker Governance Portal. On the other hand, they can choose a Vote Delegate to be their representative."
"Currently, there are three types of voting in Maker governance, i.e., Forum Signal Threads, Governance Polls and Executive Votes."
"The results of signal threads are related to on-chain governance... off-chain governance acts as the foundation of on-chain governance"
"increased voting power of >100k and Delegate can decrease the growth of ETH ratio"
"The basic auction moves the DAO from a default governance state that typically is a voting regime into a control period in which the winning bidder controls the DAO"
"The mechanism here can be seen as an extension that adds a way to right the ship through temporary, contestable delegation of control to a competent party if the usual voting and delegation mechanisms break down."
"The auction mechanism here could extend to some current projects as a unified whole, encompassing both the centralized and decentralized portions of the projects."
"If a proposal is approved, smart contracts automatically execute the decision."
"Additional teams may be formed as needed, with membership subject to time limitations and financial allocations for self-governance."
"we introduce a model of proxy voting, where voters... may either delegate to a proxy, if there is sufficient agreement... or vote directly"
"When λ = 2k+1, proxy selection for coherent instances and any k ≥ 0 can be optimally solved."
"We complement our theoretical results with experiments on the performance of voting with proxies on realistic data sets where voters exhibit incomplete preferences. We highlight the effect that the number of dReps, revealed set sizes and thresholds have on the total number of voters who delegate instead of voting directly..."
"Delegates in DAOs receive voting rights from tokenholders and vote in their names. They actively participate in governance and get paid for this activity."
"Its uniqueness lies in its ability to integrate philosophical anticipation of AI agents’ diverse use cases into a structured, dynamic risk-based framework, while also proposing an adaptive, decentralized regulatory approach that evolves alongside AI technology."
"In some of the most important DAOs in DeFi, token holders who choose not to vote directly can delegate their votes to representatives, known as delegates, who vote on their behalf."
"The fourth and final step in the governance process is the on-chain vote. The Governor Bravo smart contract facilitates the management of this part of the process in conjunction with the UNI token smart contract that keeps track of vote delegations."
"Table 1. Governance process stages ... Temperature Check ... Consensus Check ... On-chain Vote"
"we assess decentralisation based on the largest token holder’s share, whether there is sufficient participation, and whether decisions are executed automatically. We label a DAO’s decisions as “fully automated” when successful on-chain proposals directly trigger contract execution"
"Hence, introducing tiered quorums or partial delegation (as in Liquid Democracy) could further diversify proposer authority."
"Throughout, as a default, we assume that voters have flexibility with respect to abstaining, voting, and delegating: Assumption 6 (Voter Flexibility): Voters may choose to vote or abstain on any portion of their voting rights. If explicit delegation of voting rights to others is permitted, voters may delegate any portion of such voting rights in any mixture to as many delegates as desired."
"considering transfer delegation requires adding an additional dimension to the concept of competence: Delegative competence is the ability to delegate voting rights in a way that increases the probability of a correct collective decision"
"Delegative competence is the ability to delegate voting rights in a way that increases the probability of a correct collective decision."
"The composition of the menu and whether there are limits on transfer delegation to each delegate may make a big difference."
"Delegation is a key function of management, whether centralized or decentralized."
"After the control period ends, the DAO reverts to its baseline governance state, typically a voting system such as the ones we have examined in this paper. As a result, the auction mechanism can provide guardrails for that voting system."
"“The Convergence of Iterative Delegations in Liquid Democracy in a Social Network”"
"decentralized governance may require institutional responses—such as delegation design, proposal screening, agenda management, or other participation-saving mechanisms—once governance workload grows sufficiently large."
"Small group decision-making in DAOs is typically done through multi-signature wallets ... mainly used in three ways: 1) as the only mechanism governing the DAO or a subsection of the DAO, 2) as a safeguard that can override or veto democratic decisions, or 3) implement non-binding off-chain votes."
"the delegation of fund allocation to a small group of certified badgeholders"
"Execution Automatic (20) Manual (52)"
"the DAO divided activities into ‘workstreams’—a kind of rebranding of corporate departments or business units for a fluid, virtual workplace."
"The following year, GitcoinDAO created the Steward Council, an entity that invites Stewards to participate in a structured governance experience, including regular ‘sync calls’ and other interpersonal activities to more intentionally organise the attention of leading Stewards"
"The organisation had to augment that system with additional provisions to support Stewards in directing adequate attention to their roles, as well as to more intentionally coordinate operational attention through workstreams."
"These provisions included issuing reputational capital (scorecards and awards), establishing tight-knit groups (a board-like Council and workstreams), and providing direct financial support."
"Other core principles include tracking dependencies, ensuring continuous valuation, and structuring modular, adaptive governance mechanisms."
"Contributors should be able to adapt contribution rules to their local needs while maintaining system-wide coherence"
"Regen Network uses localized ecological contribution tracking, nested within a broader blockchain-based credit system, ensuring different ecological zones can develop their own governance models while maintaining interoperability."
"Such implementations allow for nested, tree-like dependencies, which can be part of an overarching democratic governance process."
"Delegation and liquid democracy"
"conceptualizes DAO architectures as comprising five distinct layers, three of which are specific to DAO systems and define their organizational, coordination, and execution structures"
"This distinction is particularly relevant for understanding which toolkits serve as infrastructural components and which act as final applications"
"the DAOMod ontology formalizes the three key perspectives of DAO architecture—Organization, Coordination, and Execution"
"the practical evolution of DAOs reflects a gradual transition from decentralized experimentation to hybrid governance models that blend decentralized decision-making with institutional oversight"
"Further example can be found in the Aragon DAO [36], a project aimed at developing tools to create other DAOs running on the Ethereum network, which uses the Aragon Association as its “manager” (“stewardship”)."
"Contemporary decentralised projects typically operate through a tripartite structure comprising a non-legal entity (the DAO), a development company (DEVCO), and a foundation. Each entity serves a distinct yet complementary role in ensuring the project’s long-term success and sustainability."
"As already pointed out, a DAO must be wrapped in a legal entity to enter in an employment contract."
"The architectural anatomy of a Decentralized Autonomous Organization (DAO) is best conceptualized as a layered socio-technical stack"
"The modular pattern decomposes DAO logic into discrete, interoperable contracts—such as governance, treasury, and identity modules—enabling isolated upgrades and enhanced auditability."
"Why open source this framework? Representative structures in the Collective can now adopt and adapt this framework to their operations, so that decision making frameworks are consistent across the Collective"
"Signals works with Initiatives—ideas or actions seeking support. Initiatives live inside Boards (configuration sets), and DAOs can run multiple Boards with different parameters."
"Delegated voting: The voting power is based on a delegation strategy."
"SubDAOs are an emerging approach for different working groups to create their own foundation and ownership structure."
"The last role is the guardian, a specific blockchain user tasked with monitoring the DAO governance process. If the guardian detects malicious proposals targeting DAO governance, he has the authority within the governance contract to cancel such proposals."
"In response to low voter participation, governance delegation allow users to delegate votes to representatives... This approach attempts to balance broad participation with effective decision-making"
"current implementations have adopted tools to overcome former limitations and change smart contracts as deemed necessary through collective determination."
"Hypha’s governance innovations include multi-layer modular voting, “leadership without control” protocols"
"DAO 3.0’s modular, relational, and context-adaptive designs"
"This nested structure, referred to as “membranic” because it operates like semi-permeable boundaries in biological systems. Enables both independent action and interconnected collaboration."
"Hypha also embraced a fractal and membranic architecture, allowing decision-making processes to emerge organically across nested layers, whether global, local, or thematic."
"Other DAOs... establish a Governance Council that will look after their governance for a previously agreed period."
"Technical and Operational Support is composed of technical, administrative and other personnel who are adequately remunerated."
"Shuai Wang, Wenwen Ding, Juanjuan Li, Yong Yuan, Liwei Ouyang, and Fei-Yue Wang. Decentralized autonomous organizations: Concept, model, and applications. IEEE Transactions on Computational Social Systems, 6(5):870–878, 2019."
"Enhancing DAO Governance through Committee-Based Decision Making"
"Consequently, shareholder voting should serve as a last resort for accountability, rather than the primary mode of decision-making."
"The voting process in Uniswap consists of three phases"
"Proposals that pass the off-chain phase proceed to on-chain voting, where the proposal initiator must write code for a smart contract"
"many DAOs have adopted this approach as a direction for governance transformation by establishing decision-making committees and mandating that token holders delegate their voting rights to committee members."
"many DAOs have adopted this approach as a direction for governance transformation by establishing decision-making committees and mandating that token holders delegate their voting rights to committee members."
"Community recovery is introduced as a key enforcement mechanism, alongside two key principles: plurality and subsidiarity."
"Under subsidiarity, “higher-bandwidth” local communities benefit from lower monitoring costs because of periodic in-person voting and verified peer-to-peer interactions."
"Vertically, communities are embedded in sub-networks, which in turn belong to broader networks."
"Delegates or elected representatives would likely emerge to voice coalition needs more effectively in the broader network."
"At different social scales—communities, sub-networks, and networks—bridging bonuses elevate consensus across differences"
"This nested feedback and adaptation—community AIs within coalition AIs, etc.—presumes that member communities retain fine-grained control over their agents"
"the vision proposed here is a network of contextualized and interrelated AIs—each unique with partial differentials in stake... Subsidiarity deepens AI networks—pushing down control for accountability, while bridging bonuses expand breadth"
"Organizationally, SeeDAO codifies a layered system that blends bottom-up emergence with light top-down coordination... a combination of self-organization and hierarchical flow-layered governance... The “City Hall” functions as the day-to-day governance organ... The “Strategic Incubator” operates under expert governance..."
"As SeeDAO matured, mid-level coordinators emerged as stewards of institutional continuity, effectively functioning as the enactors of instrumental rationality and custodians of procedural commitment."
"This reflection exemplifies what Ostrom (1990) termed nested rule systems–procedures maintained through deliberation and mutual trust rather than hierarchy."
"Delegation capabilities for token holders"
"one overarching structural weakness to which DAOs are subject is those of the costs associated with democratization of decision-making among organization members"
"The above observations illustrate that delegations are not utilized to a great extent in Compound and Uniswap governance. Most voting power lies in the hands of delegates who receive most of their voting power from a single token holder."
"delegation can lead to what Wandler [4] terms “recentralization,” the concentration of the bulk of voting rights in a few hands."
"We claim that the relationship between them is more complex than appears from the existing literature. Decentralization does not necessarily advance the wisdom of crowds. Many methods of delegation are problematic. Increased participation is not necessarily desirable."
"the appeal process triggers a multi-tiered review, with each successive tier requiring a jury composed of informationally distinct members"
"These 7 new domains would need to integrate with 3 existing priority areas ... creating a total of 10 potential work streams."
"First, it explicates a framework for minimal viable governance for obstacles that appear early on"
"Executable governance challenges this arrangement by forcing realignment. If authority is delegated, its scope must be explicit. If execution is automated, enforcement must be continuous. If harm occurs, redress must be structurally supported."
"Governance must operate at the level of execution frequency, default operation, and cumulative impact."
"there are like three, four, or five different temporal modes that need to be attended to simultaneously."
"Thus, our decentralized and remote team structure includes people with diverse backgrounds, perspectives, experiences, and belief systems."
"A planetary protocol commons also requires polycentric governance... this principle suggests community-driven protocol improvement, graduated sanctions for misbehaving autonomous technologies and AI agents, and integration with municipal and legal oversight"
"Topics such as grant administration, incentives, and delegating suggest that systematic efforts are made to assist creators and encourage active engagement on the platform."
"The mechanism of voting delegates was introduced in July 2021... Noticeably, the total votes and the highest votes in a single poll are different among these known voters."
"This could also be supported by studies suggesting that delegating tasks to a group of experts can lead to better aggregation of information."
"To vote, a simple form of liquid democracy is used: To be able to vote, a token holder must delegate their tokens to a delegate."
"Notably, we find that those large and powerful delegates rarely exercise their voting power to overturn a vote. In most cases, they decide in the same way as the larger community, i.e., smaller delegates or community delegates."
"The DAO Code creates a dynamic vote pool consisting of vT(qT, tdq) additional voting rights assigned to the bidder, an amount that is adjusted continuously"
"This perpetual ability to renew and redesign the unified enterprise also addresses another rigidity, one that is intertemporal."
"A classic market solution to these problems is to put the entrepreneur in a management role, with one or more institutional investors providing the funds, and then to create a management contract..."
"Without these mechanisms, off-chain voting in larger developer teams can lead to fragmented decision-making, governance disputes, and ultimately, a decline in DAO valuation."
"Through decentralized coordination and the automation of key functions, such as voting and fund distribution via smart contracts, DAOs can facilitate quick, democratic, and transparent decision-making."
"for the natural case of an agreement threshold of 50%, we show that a single dRep is capable of achieving an approximation factor of 3, whereas only 2 dReps are sufficient to elect the optimal proposal"
"When λ=2, proxy selection for majority agreement can be optimally solved."
"Additionally, this vertical addresses proposals that create or iterate upon processes for onboarding and offboarding roles and entities vital to governance operations, such as service providers, facilitators, working groups, and councils."
"To implement a scalable, decentralized governance model, our proposed framework leverages the following core technologies"
"Smart contracts automate decision enforcement, such as implementing updated compliance standards or triggering escalated oversight for flagged systems."
"delegation decisions are not driven by individual voting events. Instead, they appear to be long-term decisions, akin to the appointment of independent board members in companies, who are designated to act as delegated monitors on behalf of shareholders."
"We then successfully cast a vote on an active proposal using Uni-Wallet02, confirming that the voting power remains with the wallet despite of the UNI token having been transferred to Uni-Wallet03 already."
"Prominent academics and industry participants see explicit delegation of voting rights to others as a possible way both to address low participation and to direct voting power to more informed and competent voters."
"Classic delegation involves the explicit transfer of voting rights to others, which we call “transfer delegation.”"
"One component is weight competence, the ability to ascertain what the optimal weights are for other voters in the independence case or to ascertain independent signals and their associated optimal weights in the case of dependencies."
"when transfer delegation is the choice method, an important structural parameter is the number of delegative steps that are allowed."
"Suppose, however, that the whale uses its stake to create a collection of carefully selected delegates, each of whom are granted independence from the whale with respect to voting."
"As proposal flow rises, this monitoring task may become increasingly burdensome, creating scope for participation fatigue, reliance on delegates, and the effective concentration of influence even when formal voting rights remain widely distributed"
"Low Participation: Participation in governance decisions is low, so members should instead elect decision-makers to conduct governance for them."
"Centralizationcanmakemembersfeeltheirvotehaslittleimpact, whilefrequentproposalsindirectdemocracyincreasetheeffortrequiredtostayengagedbeyondtheperceivedbenefit."
"We present the final taxonomy in Table 1. It consists of three main categories, seven sub-categories, 20 dimensions, and 53 characteristics"
"Governance Process Execution: ... It can either be executed Automatically... or Manually, where one or more members of the DAO must issue the transaction in good faith."
"Zhao, X., Ai, P., Lai, F., Luo, X., and Benitez, J. 2022. “Task management in decentralized autonomous organization”"
"Delegation and liquid democracy"
"Pluralism and polycentricity"
"In response, some DAOs adopt legal wrappers (e.g., LLCs, Swiss Associations, or Foundations) to delineate liability, at least partially"
"it is the appropriate and rational choice to delegate regulation of these matters to the Contracting States’ discretion"
"According to this regulation, if the DAO wishes to qualify as a cryptocurrency service provider (CASP), it must be “wrapped” in a legal structure with a registered office in an EU country to comply with MICA purposes."
"Snapshot is often used for polling. AragonDAO, Uniswap and MakerDAO are examples of DAOs using a hybrid governance solution"
"Endorsement-based extensions and advanced incentive schemas are scoped as optional modules and may evolve separately from the core."
"Further providing several promising directions that can be improved in the future to fit our identified four aspects in results (e.g., multi-DAO Collaboration, the incorporation of subDAOs)."
"Voting in SubDAOs can also be utilized to facilitate the delegation of decision-making power to specialized groups, enabling efficiency in governance."
"DAOs should be viewed as a diverse landscape rather than a singular organizational model"
"researchers should investigate new tools and frameworks to further automate and streamline DAO functions, aiming to enhance efficiency and scalability"
"The documentation should provide a comprehensive overview of the DAO, detailing the governance process and how members can interact with it."
"the execution of these proposals is carried out by the DAO developers rather than being automatically triggered by smart contracts"
"The Optimism Collective’s bicameral governance model... blends token-based governance with a more curated form of public goods funding... the system intentionally separates financial incentives from social value"
"When CBPP communities begin upsizing, they normally try to decentralize control over infrastructure and increase the level of formalization in organizational processes"
"The relative ease of forking a DAO potentially limits negative effects of centralization, as dissident members can pursue their objectives independently."
"Within a given community or social layer... However, in a vertically nested network—where communities are embedded within sub-networks and broader networks with subsidiarity"
"With enough common ground, two groups may form an umbrella currency to open a shared space for dialogue, while nonetheless maintaining their own internal channels."
"Community currencies prioritize efficient enforcement—not perfect enforcement—redirecting resources to where they matter most: more valuable local currencies receive greater scrutiny, while less valuable global currencies receive less."
"Reijers, W., Wuisman, I., Mannan, M., De Filippi, P., Wray, C., Rae-Looi, V., Cubillos Vélez, A., & Orgad, L. (2021). Now the Code Runs Itself: On-Chain and Off-Chain Governance of Blockchain Technologies."
7
0
Improve security, risk management, dispute resolution, and enforcement legitimacy in governance systems
0.80
Evidence 71 143 59
"“Most onchain orgs & businesses rely on a rule set where rules require interpretation, i.e. rules have a degree on subjectivity.”"
"“Those rules cannot be enforced deterministically, but require outside (typically human) input.”"
"“Enforcement of subjective rules is poor in most onchain orgs, resulting in lack of dependability (compared to traditional offchain legal structures).”"
"“DAOs and other organizations often fall back on highly centralized decision-making that is intransparent and potentially unfair.”"
"“Furthermore this creates legal risks and uncertainty for stakeholders.”"
"“(i) oracle failures or disputes in prediction markets (ii) investment rules in DAO treasuries being unclear and the source of contention (iii) foundations overriding DAO member votes (iv) self-dealing and quid-pro-quo handouts of DAO treasury funds”"
"“enforcement by committees”"
"“dispute resolution protocols / subjective oracles relying on game-theoretic mechanisms (Kleros, UMA)”"
"“restaking protocols (Eigen, Symbiotic)”"
"“mix of elected enforcement committee and external dispute resolution (QGOV)”"
"“concept stage: forking protocol ('Backstop L2'), contestable control”"
"“AI-based rule enforcement (some teams working on this but still highly experimental in my view)”"
"The core challenge is the failure of juror selection mechanisms across both traditional and decentralised governance."
"The process for identifying competent and honest adjudicators is opaque and suboptimal."
"There is a massive disproportion between the number of available jurors and the volume of active disputes. This imbalance creates severe case backlogs, effectively denying timely justice."
"Judiciary in many States is perceived as corrupt or influenced by opaque appointment processes."
"these systems lack a clear, standardised framework for selecting private jurors, often leading to uncertainty regarding their legitimacy and expertise."
"Platforms like Kleros have handled over 1,600 disputes. They rely on "Schelling Point" game theory, where jurors are incentivised to vote with the majority to earn rewards."
"there aren’t clear legal frameworks which explicitly legitimises this."
"Reputation-over-Revenue Systems: Transitioning from purely economic stakes to systems using Soulbound Tokens (SBTs) or non-transferable reputation."
"A juror’s "weight" in a dispute is determined by their history of participation, the fairness of their past rulings, and their proven subject-matter expertise."
"The process could be managed by a DAO which sets standards on juror requirements."
"DAO vets a pool of qualified jurors for specific courts dedicated to specific subject matters."
"Using blockchain to create an immutable record of the Juror’s decisions, adherence to rules, etc."
"because jurors are incentivised to vote with the majority (the Schelling Point), they may not vote for what is right, but for what they think everyone else will say."
"the probability of being selected is proportional to the number of tokens you stake. This means wealthy participants can dominate juries regardless of their expertise in the subject matter."
"Kleros v2.0 is implementing "Modular Dispute Kits." These allow specific "sub-courts" to require Soulbound Tokens (SBTs) or expertise filters"
""In April of 2022, an attacker used a flash loan ... to buy enough votes, approve a malicious proposal to drain the treasury""
""In 2023, a U.S. court ruled in favor of the CFTC against Ooki DAO""
""This meant that any person who had voted in governance was personally and jointly liable for the fines""
""VERP ... creates a censorship-resistant legal and physical bridge""
""I observe this pattern in many DAOs that use stewards to vet proposals. I also see platforms like Gitcoin having central committees to gatekeep participation in making proposals.""
""There's no check on admin power in DAO message boards.""
""identified a critical vulnerability exposing Personally Identifiable Information (PII)""
""the data removed from the site within 12 hours of the report""
""veto.ensdao.eth ... grants a small group of trusted participants the centralized power to veto malicious proposals""
""if an active proposal is put forward to dissolve a working group, all working group funds, including outgoing payments, must be immediately frozen""
""The exposure was resolved and the data removed from the site within 12 hours of the report.""
""if you don't have direct execution power over the decision, the whole premise of decentralization and censorship resistance disappears""
""The actual governance of the project is whoever controls that circuit breaker""
""there are very strong incentives for the equity holders to just funnel all the value towards the equity and just use the token as a funding mechanism only""
""the lack of these enforceability diminishes the opportunity or the role of the token as a chain point for capturing value""
"“One of the biggest issues I see in many DAOs (including RARI DAO) is that the Foundation is taking on 'DAO operations' work - i..e. management of the treasury without any visibility or current transparency of the spend.”"
"“Just 'approve this budget and trust us'.”"
"“the Foundation is managing day-2-day operations themselves and treating DAOs and the delegates with lip service.”"
"“The DAO security Fund has high nepotism probabilities and lack of overall trust in the full council to make merit based decisions, not security issues.”"
"“we can't micro manage what people decide to do with their assets”"
"“The existing legal layer has struggled to see DAOs and do not appear to be making progress without sacrificing centralization.”"
"“DAOs (for example UNI, AAVE) have publicly endured legitimate disputes that weren't necessarily handled in a way suitable to all interests, and it harmed project interest and cohesion.”"
"“Capital investment into the ecosystem overall is waning without predictable dispute resolution built into the protocol level.”"
"“The recent events with AAVE, UNI, rugpulls... Virtually anything where unclear dispute settlement and lack of coherence scares interest/investment/participation”"
"“The same problem applies between DAOs, though I think there is less interest in interDAO agreements so far (though may emerge more strongly in the future)”"
"“Decentralized AI-powered sim-juries interpreting programmatic ethical theory”"
"“a lot of back-door lobbying is needed to have proposals be accepted and pass.”"
"“Governance is not about solving objective bottlenecks to collective alignment, but about creating legitimacy for collective decisions.”"
"“It is about getting stakeholders in a community to feel heard in decision-making processes; viewing an eventual collective decision as legitimate - even if they might disagree with it.”"
"“This implies designing a governance protocol that allows communities to create their own roles with specialised rights and responsibilities, design some type of filters / throttles to avoid being overwhelmed by noise, and define how different roles check each others to ensure accountability.”"
""end-to-end private voting so participants can't be bribed, manipulated, or pressured - votes reflect conviction, not social dynamics""
""Governance Tooling: Reputation and privacy""
"“evaluation/accountability councils of agents (eg using GenLayer) to bring down the very high cost of evaluation, which is a key input into accountability mechanisms”"
"“A gov framework of proven, legitimate practices that appeal to risk-averse audiences who don't want governance for the sake of governance”"
""More robust accountability (e.g. GAO for a DAO)""
""Zero accountablity""
""Playing Oprah: \"everyone gets funded\"""
""minimal accountability structures""
""impediments to foundation management and transparency""
""Governance Theater (Used for valuation or legal reasons)""
""DAOs used as a legal risk hedging strategy rather than something cultivated for ppl to engage in""
""Visible voting facilitates politicking""
""Governance often doesn't have decision-making power over material decisions""
""governance is NOT just about decision-making""
"Design and funding for a transparent, accountable multisig-based voting system to control emergency abort of upgrades, with regularly reviewed and opt-in client membership."
"This structure reduces the risk of coordinated manipulation or factional bias"
"vote buying, vote selling and coercion are easy"
"We found that decay-bounded lock curves, immutable board configurations, and programmable acceptance thresholds can preserve pluralistic preferences while resisting capture."
"Using Kleros in the appeals and dispute resolution of the Gitcoin Grants Protocol"
"Compound’s governance (Governor Bravo) is a classic design: proposal → vote → queue in Timelock → execute after delay."
"Arbitrum’s DAO design includes a Security Council to handle time-sensitive or emergency decisions"
"Rights directly shape behavior by specifying permissible actions. In this sense, more so than values or goals, rights are highly consequential for governance. Within DAOs, rights are further distinct because of their correspondence with smart contracts."
"The right to dispute/challenge proposal - The right to disagree with the proposers attestation by challenging the proposal"
"It makes sense to decentralize this way when a function would benefit from being run by a group of third party, neutral, or loosely affiliated individuals. Classic example: Security Councils, Developer Advisory Boards that are not affiliated with the Core Dev Program, etc."
"Appeals operate on consequences rather than decisions. Remedies address harm that has already propagated across systems."
"Executable governance seeks to interrupt escalation before visibility collapses by introducing contestability early, while correction remains possible. It requires mechanisms that surface cumulative impact, not just discrete errors. It requires authority to pause, adjust, or override execution paths when early signs of harm emerge."
"there was a decomposition of that sub-DAO around the different modalities of work, ranging from near real-time application of the models to their maintenance, to the development and education of the community that maintained those models."
"mechanisms for resolving disagreement as to how to proceed in the face of changed circumstances (or underlying membership demographics) are essential to resilient governance"
"institutions for resolving disputes after the fact are likely an important design component to be considered, especially as the complexity and magnitude of interactions within a given organization increases"
"This necessity for increasingly costly mechanism design ex-ante is only heightened absent the presence of ex-post resolution mechanisms considered in the following subsection."
"The extent to which this role can be fully automated is unlikely... Unknown unknowns, and their incidence in terms of a given organization's objectives, pose a vexing obstacle for fully automated governance."
"Joint House optimistic approvals will leverage dynamic veto thresholds, in which thresholds are adjusted lower as consensus among stakeholders increases. This is a mechanism to reduce gridlock... If a proposal is veto’d, it will proceed to an appeals process."
"Graduated Sanctions | Everyone knows each other; penalties can be tailored to circumstances | Hard to identify violators; enforcement across jurisdictions is complex"
"We already know that steganographic attacks (like the hidden unicode message) can occasionally work on these LLM advisors."
"A more discrete, and observable mode for guardian and other agentic roles that can assist and complement DAO governance can be found in the realm of scoped contract permissions, or “permits”."
"In extreme cases, over-extraction can result in underinvestment in mission critical security measures, which can cause existential risk."
"Ready for Re-activation: The DRS and stOBOL are both excellent infrastructure. We are preserving these designs and scores so they can be re-activated the moment the landscape allows for binding, high-impact governance."
"engineers must also think about diverse stakeholder groups, the downstream implications of the things that they build, and ensure that the systems they design are both safe and sustainable."
"The Citizens’ House veto power guards against capture of the Token House and increases the resilience of the overall system."
"What kinds of accountability and recourse will exist when an error is made? Where are the human-in-the-loop checkpoints when machine judgment may carry life-or-death consequences? And what legal and social protocols must guarantee responsibility and redress when harm occurs?"
"key trigrams such as “member revocations committee” and “confirmed member revocations” point towards structured procedures for managing community membership and the enforcement of rules"
"Executive Votes use the ’Continuous Approval Voting’ model to make the system more secure."
"If collateral is insufficient, theoretically Maker protocol will be less safe due to fewer users participating in it."
"if the locked collateral assets become risky, Maker protocol may be affected. In March 2023, DAI was severely influenced by the depegging of USD Coin (USDC), since USDC is one of the most important collateral assets in Maker protocol."
"Maker protocol governance decides collateral onboarding and offboarding."
"When governance is excessively centralized, it leaves DeFi systems vulnerable to manipulation by a select few agents."
"The mechanism deters value destruction by the threat of potential loss of both the value deposit and an additional surety deposit, which can be set large enough so that value destruction is never profitable."
"In the context of a battle for control, the mechanism developed here makes empty voting irrelevant"
"If the indeterminacies and potential pathologies of voting threaten the coherence or direction of the DAO during an open period, causing the value of the DAO to drop, an auction that initiates a control period is a remedy."
"The fact that this deposit is held by the applicable smart contract makes this commitment credible and immediately enforceable in a code feasible manner."
"Because of the purchase deposit requirement, nonpayment cannot derail the auction. There is no need to have recourse outside of the Code to legal process for purposes of collection."
"There are possible dangers arising from post-auction market manipulation by control parties. If the market is thin enough, the control party can engage in focused buying to drive the market up... similar to a pump and dump."
"the surety deposit is designed to protect against value destruction by bidders who gain control of the DAO"
"The baseline loss penalty will deter value destruction of any magnitude, no matter how small, and increasing it does not affect the post-auction performance incentives of parties not intent on value destruction."
"There is a strong argument for making the code governing the auction rules themselves immutable or nearly so."
"As discussed above, one of the biggest challenges for the mechanism is toehold reporting... toehold reporting is vital for the integrity of the bidding process and for enforcing the market liquidity constraint."
"If a bidder fails to disclose that bidder’s toehold position... the claimed amount is inflated. Since that claimed amount is the touchstone of the auction that determines the winner, a bidder whose business plan is in fact inferior to the business plans of one or more other bidders can prevail."
"A new control party followed by a control period can correct the adverse consequences of voting mechanisms if necessary, defeat empty voting if it becomes a problem, and overturn attempts of malicious actors to damage the DAO."
"The stochastic characteristics of the token price, W̃b+W̃e, such as volatility are key to the adjustment."
"high wrapping complexities may also be an indicator for convoluted and unnecessarily complex wrapping schemes that may introduce additional risks."
"Novel metrics, such as the wrapping complexity, may be useful for studies concerned with the interdependencies and risk assessment of the DeFi landscape."
"create extreme interdependence affecting protocol robustness"
"In the case of complex disputes, DAOs implement decentralized conflict resolution mechanisms, such as token-based arbitration"
"These structural weaknesses have led to governance attacks, where malicious actors exploit low participation and centralized voting power, sometimes leveraging flash loans to push through harmful proposals"
"technical failures, such as network errors or hacking incidents, could jeopardize the integrity and functioning of the organization. This reliance on technology further underscores the importance of robust infrastructure and security measures"
"Norta, A., Othman, A. B., & Taveter, K. (2015). Conflict-resolution lifecycles for governed decentralized autonomous organization collaboration. ... Feichtinger, R., ... (2023). The hidden shortcomings of (d)AOs: An empirical study of on-chain governance."
"we expect that flawed governance design potentially makes it susceptible to both large stakeholders controlling the protocols or hostile exploits."
"due to the programmability of smart contracts and interoperability of blockchain applications voting power can be “borrowed” and voted in the same transaction."
"We observed a tendency for shifts in governance token ownership shortly before governance polls take place in 1202 (14.81%) of 8116 evaluated proposals."
"The number of majority shifts increases sharply prior to governance polls, indicating last-minute token acquisitions."
"the number of shifts increases, indicating last-minute voting power acquisition."
"users might trade voting power to decide the outcome of the proposal in their preferred way."
"Protocol Risk Management (PRM) - Manage operational, technical, liquidity, and other risks related to the protocol or the assets held within the protocol."
"The attacker deceived members into trusting the code in the proposal was benign. In reality, the code intended to transfer all assets owned by Beanstalk to the attacker."
"All privileged functions within the governance contract should be controlled by the governance contract itself to ensure the governance process is independent and protected from any potential violations by developers."
"Among the 16,427 DAOs analyzed, 665 could be manipulated by developers."
"This explains why attackers frequently target proposals in the governance process, as approximately 90 percent of proposals fail to provide a clear and consistent description of the code for the members."
"Upon examining these malicious proposals with our approach, we identified all 13 proposals as 8 malicious proposals due to lack of description intention, 3 proposals due to incomplete function, 2 proposals with incomplete parameter, and 1 proposal is subjected to mutability of proposal code."
"we adapt the risk-based model to categorize AI agents into four tiers—unacceptable, high, moderate, and minimal—ensuring proportional oversight based on their potential societal impact and associated risks"
"the framework incorporates decentralized justice systems for transparent dispute resolution"
"The registry integrates a dynamic risk classification system powered by decentralized oracles and smart contracts, ensuring real-time, transparent, and adaptive AI governance."
"By integrating risk-based categorization (unacceptable, high, moderate, minimal) with proportional oversight mechanisms"
"If approved, the code is automatically deployed after a two-day delay period, known as a timelock, which is enforced via a smart contract. This delay serves as a security mechanism"
"This creates a situation where voting power should be removed from Uni-Wallet02 but it is not, allowing Uni-Wallet02 to retain the voting power until Uni-Wallet03 explicitly delegates their voting power"
"Average Transaction Fee -1.258*** ... -1.190***"
"Security vulnerabilities in smart contracts can have severe consequences due to blockchain immutability, as seen in “The DAO” hack"
"the contestable control mechanism may create conditions that allow decentralized governance to function well by creating guardrails for desirable governance features that otherwise might be too risky."
"Our results highlight an inherent tension in DAO design: mechanisms intended to protect members from majority attacks can inadvertently create opportunities for costly speculative exploitation. We highlight governance mechanisms that can be used to prevent speculation."
"under Mechanism 3, a fork occurs with certainty whenever S > P . ... under Mechanism 4, no fork occurs."
"the implications of incorrect governance systems would be high, causing irreversible situations and cause damage beyond repair"
"in “The DAO” case, an overlooked piece of code intended to promote decentralization and encourage the creation of “child DAOs” ultimately led to the organization’s collapse"
"The absence of strong protections against centralization in token-based governance systems results in considerable security risks, which have only been partially mitigated."
"The cost of such an attack can be further reduced if governance tokens are borrowed instead of bought (e.g. the Beanstalk Hack[52]). Centralization also increases the risk of bribery and collusion."
"LowvoterparticipationincreasessecurityrisksinDAOs... farfewerparticipantscandetermineoutcomes."
"Resistance to Manipulation. A voting rule should be robust against strategic behavior, including bribery and control."
"Majoritarian Phantom outperforms other rules across strategic robustness metrics, including higher bribery and control costs, stronger stability under noise, and reduced voter extractable value."
"this could pose a significant risk to the value of Bitcoin and subsequently its security"
"this could pose a significant risk to the value of Bitcoin and subsequently its security [27]."
"including potential bugs which can lead to exploits and hacks"
"Code audits of smart contracts are necessary but cannot ever be sufficient to avoid exploits"
"only a few DAOs make use of dispute resolution mechanisms or decentralised arbitration services"
"While Majoritarian Phantom remains strategy-resistant in the voting stage, its resilience under pre-voting manipulation is an open question warranting further study."
"The recent legal ruling involving Lido DAO... ruled that a DAO could be liable under general partnership laws and signals the novel legal environment that decentralized entities must navigate"
"efforts to develop standardized legal frameworks, or at least widely accepted “safe harbor” provisions, are vital"
"Without well-designed incentives and regulatory clarity, DAOs risk entrenching power imbalances rather than enabling decentralized, community-driven governance"
"The attack would appear to have been facilitated by the need to call a vote among all Ethereum token holders to correct a computer error found within a smart contract of the DAO."
"there is no clear, legally responsible entity that can interface with the outside world; when the management is handled by AI, which also lacks legal personality, it doubles the accountability vacuum"
"In case the DAO refuses to comply with an enforceable court decision, arbitration or any alternative dispute resolution award or official order, all members who do not vote in favour of compliance shall be liable..."
"Article 21: Compulsory Liability Insurance and Insurance Fund 1. A DAO is obliged to submit proof of the compulsory liability insurance policy..."
"Article 21 incorporates a compulsory liability insurance system and insurance fund to the DAO liability regime."
"Smart contracts must be designed to incorporate access control mechanisms and a high degree of robustness to prevent functional errors and resist third-party manipulation."
"Nevertheless, for anti-money laundering (AML) purposes, originator and beneficiary information of a transaction must be exchanged between crypto-asset service providers (CASPs), or between a CASP and a self-hosted wallet, for transactions exceeding USD 1,000. This requirement aims to ensure the traceability of virtual asset transfers under the so-called “travel rule”."
"in the absence of specific regulation, unwrapped DAOs may currently operate as mechanisms that facilitate tax avoidance."
"Security remains a critical concern, with studies advocating for comprehensive testing, static analysis, and manual audits to mitigate risks associated with smart contract vulnerabilities"
"Vote buying, vote selling and coercion are easy... Hostile take-overs are incentivised"
"Park, S., Specter, M., Narula, N., Rivest, R.L.: Going from bad to worse: from internet voting to blockchain voting."
"1.1 Goals • Deliver correctness and liveness guarantees under realistic network partitions. • Keep the trust surface minimal and explicit (immutable board config, explicit thresholds)."
"Existing DAO fields are absent of rigorous studies... we point out several unavoidable drawbacks (e.g., centralization, high cost)... Excavating historical failures and the reality of today’s DAOs (e.g., contract reliance)."
"DAOs can consider implementing dispute resolution protocols or mediation processes to address disagreements and prevent them from dividing the community."
"DAO communities must dedicate resources to establishing security protocols for code auditing and developing enhanced tools and supportive infrastructure."
"Feichtinger et al. [72] provided a systematically study on security threats to DAOs."
"as well as revealing potential threats of centralization, contract reliance and policy impact."
"Feichtinger et al. [28] categorize risks, such as bribery, coalition attacks, and code weaknesses, which are often overlooked in traditional audits"
"voting mechanisms in DAOs are susceptible to attacks like Sybil attacks"
"blockchain-based dispute resolution (BBDR) platforms also face regulatory challenges"
"researchers should focus on identifying and mitigating vulnerabilities, such as bribery and coalition attacks, to safeguard the integrity of these decentralized systems"
"integrate innovative dispute resolution mechanisms, all while accommodating the evolving nature of DAOs within the global legal landscape"
"DAOs face several challenges within their governance processes that can compromise their integrity and potentially lead to the loss of dApp assets."
"Among the 3,348 DAOs analyzed, we found that 176 could potentially be manipulated by developers, and one DAO’s governance contract code logic can be directly altered by its developer."
"Future work could leverage these identified issues to develop tools that help DAO developers and members detect malicious DAOs or proposals. Such tools could play a critical role in preventing prevalent attacks against DAOs, enhancing security and trust in decentralized governance frameworks."
"Among the 35,518 proposals analyzed, 32,500 (about 91%) fail to provide consistent descriptions and corresponding code. This might explain why attackers frequently target proposals during the governance process."
"When rules are violated, sanctions should be applied in a graduated manner... Accessible and low-cost mechanisms for resolving conflicts should also be available in the community."
"Organizations built on Aragon can use the Aragon Court to arbitrate and reach resolutions."
"The Aragon Court sanctions misbehaving parties and members of the jury through the process of stacking tokens and removing jury members."
"non-compliance triggers predefined penalties or dispute resolution mechanisms, maintaining order without reliance on external enforcers"
"The upgradeability of smart contracts is consequently essential to enhance users’ trust in the governance model"
"⁃Embedded trust scaffolding: real-time sense-making and dissent mechanisms reduce the likelihood of hostile or unfit proposals passing without scrutiny ⁃Nested governance layers: limits the blast radius of bad decisions by distributing authority and isolating risk within specific subspaces"
"Other rules related to the social and ethical behavior of both participants should be defined."
"Gregory Falco, Ben Shneiderman, Julia Badger, Ryan Carrier, Anton Dahbura, David Danks, Martin Eling, Alwyn Goodloe, Jerry Gupta, Christopher Hart, et al. Governing ai safety through independent audits. Nature Machine Intelligence, 3(7):566–571, 2021."
"Clearly, the problem with requiring a buyer to get all of the firm's votes for control is that it can then be very easy for incumbent management, or some group who wants to free ride on the improvement, to buy a small fraction of the firm and block the bid."
"To the extent that ex-post changes in security/voting structure should receive further regulation, then, instead of regulating listing requirements, it would seem more appropriate to award dissenting rights to shareholders of the type that they already have in mergers, or other asset sales. In particular, dissenting shareholders could be given rights of appraisal which would allow them to attempt to show that the value of their holdings has fallen under the proposed change in security/voting structure."
"We have assumed throughout that it is illegal or infeasible to sell votes separated from shares. If an investment bank could profitably unbundle votes from shares, and repackage a firm's security/voting structure, then security holders would not be able to protect themselves from high private benefit but low security benefit acquisitions."
"For example, DAOs are susceptible to “governance attacks,” an extreme form of tunneling. In a governance attack, a bad actor legally acquires (by buying/borrowing tokens) voting power and uses this power to manipulate the DAO’s governance rules for a private benefit."
"Burning requires a process that yields “fair” and “just” outcomes. §3 explores this enforcement question in greater depth"
"§3 Enforcement addresses PCARE’s enforcement challenge—deterring strategic behavior such as bribery and coercion"
"To address this side of the deterrence equation requires a clear and credible enforcement mechanism: community recovery."
"community currencies offer a computational substrate to rapidly assemble a jury diversified across idiosyncratic bias—thereby increasing the likelihood of impartial judgments while mitigating the risks of overreach and capture"
"One tool is “receipt-freeness,” an ex-post measure that prevents a voter from proving to a third party how they voted, even if they want to."
"Communities will police account-splitting with the same scrutiny and context-sensitivity as bribes."
"penalties for such breaches take the form of a “burn,” determined through context-sensitive judgments by constituents across multiple perspectives."
"Community currencies cannot eliminate systemic risks, they both create localized buffers to absorb shocks without centralized failure and open opportunities for networks to collaboratively adapt to overcome them."
"By decentralizing control through subsidiarity and diversifying information flows through plurality, community currencies stymie idiosyncrasies from universalizing into systemic risk. Community currencies don’t solve systemic risk, but clarify it as the focal point for social innovation."
"This underscores the importance of subsidiarity, where local communities have greater stake than global communities in scrutinizing and testing the parameters and “alignment” of their local agents—extending the enforcement mechanisms discussed in §3."
"Some communities may price discriminate in the form of minimum thresholds to express risk tolerance; escalate “taxes” on AI agents based on their social distance; or require a staked deposit or bond."
"successful governance requires careful attention to both structure and incentives, with particular emphasis on fostering inclusive participation while mitigating security risks."
"Multi-sig requirements, which require multiple parties to approve major changes, provide protection against malicious actions without creating excessive friction. Time-delay mechanisms, which build in waiting periods between proposal approval and implementation, allow for community review without significantly slowing decision-making."
"First, it explicates a framework for minimal viable governance for obstacles that appear early on (e.g., abusive behavior within a core team or polarization within the community)."
"It is very difficult to enforce accountability for agreements made with DAOs"
"Developers lack accessible, effective tools to prevent vulnerabilities, validate assumptions, and detect security issues early. Security-critical tooling is underfunded"
"Protocols that lack hooks for override, audit, or contestation embed discretion permanently into execution paths."
"Appeals processes, where they exist, are designed to address discrete decisions rather than systemic patterns."
"Attention as Infrastructure Risk: Treating governance participation as voluntary creates brittle systems."
"the need for ex-post institutional solutions is nonetheless non-zero in the case of DAOs with a sufficiently complex or large-scale constitutive purpose"
"the assurance of rights is imperfect, and more importantly for this analysis, requires considerable ex-post review by judicial actors to achieve even an imperfect level of rights provenance"
"a shared smart contract that releases funds once certain criteria (e.g., avoided deforestation) are met"
"Data governance follows strict privacy protocols: all data either flows through community-owned local servers or, with explicit community consent, through GainForest-provided endpoints."
"Keep working on defenses against adversarial prompting, including the steganographic attacks I demonstrated."
"Permits in this system can be granted as fixed or multi-call rights to execute certain proposals or operations, and if this assignment is made to a smart account, it can be scoped even further."
"Payments (Smart remits payment to members regardless of whether a client has paid)"
"In addition to being safe and sustainable, the solutions we provide must also be ethical and resilient"
"Although there are mediation and adjudication tools available apart from the legal system, using these tools adds an additional element of complexity and requires trust in the tools."
"Use of a price at a single point in time to settle value and surety deposits or to set auction parameters creates the danger that various parties will attempt to manipulate market prices at that point of time... avoiding manipulation may have costs in terms of accuracy."
"Loss of these deposits is EV-robust."
"The biggest difficulty regarding code feasibility is the task of bolstering toehold reporting discussed in Section 4.1.4 above. It is not clear that detecting failures in toehold reporting is amenable to simple code solutions."
"The DAO can leverage this potential fraud liability with respect to the toehold position. Being able to submit an artificially low bid by failing to report the entire toehold position is fraud. The full enforcement and adjudication power of the CFTC comes into play."
"There is a probability that the token price will never reach V* due to stochastic elements unrelated to the cogency of control party’s business plan and the effectiveness of execution of the plan."
"By casting these results through the lens of TCE, we see that reducing transparency via off-chain voting elevates transaction hazards and opportunism, thereby eroding trust and organizational value."
"Using platforms like Gnosis Safe, financial transactions will require multiple signatures from elected representatives."
"Perhaps more interesting is the migration from the “best-case scenario” setting... An information model for the dReps... A rationality model for the dReps. Delegate representatives might not have any incentives to coordinate towards the socially-desirable outcome..."
"It also includes Risk and Parameter Reports and Updates related to managing the protocol risk."
"Thus, attackers cannot disguise malicious proposals as legitimate ones to misappropriate the DAO’s funds. Initially, we trace the proposal code to verify its immutability after submission. Subsequently, we employ a combination of Natural Language Processing (NLP) and LLM to ensure that all actions prescribed by the code are accurately reflected in the proposal descriptions."
"there exists one DAO whose governance contract code logic can be manipulated by the developer using the CREATE2 opcode."
"real-time monitoring, automated compliance enforcement, and enhanced transparency"
"The concentration of voting power through strategically aligned delegation networks raises questions about whether additional oversight of governance structures in DeFi platforms is warranted. Interestingly, such oversight could be implemented at the smart contract level as 'embedded regulation' at relatively low cost"
"Governance-related difficulties also remain, particularly the concentration of voting power and low participation rates [4] and related security issues in the governance process [17]."
"When players choose to fork and redeem their noun, the share of funds they receive can be delayed. The implementation of a vesting period significantly influences the willingness of arbitrageurs to participate. As the delay in receiving funds increases, the willingness of arbitrageurs to participate decreases."
"The implementation of a vesting period significantly influences the willingness of arbitrageurs to participate. As the delay in receiving funds increases, the willingness of arbitrageurs to participate decreases."
"Treasury Type... A single owner has full control over the treasury, whereas a smart contract is governed by a governance system or a group of multi-signature holders."
"we identified an organization that claimed to have a decentralized execution process. Still, after looking further into its smart contracts, we found out that a single user issued all of its transactions."
"if the network fragments over a contentious proposal, a “fork” may emerge, leading to separate blockchains adhering to different consensus rules"
"clear boundaries and sanctioning mechanisms defined"
"This would enforce the certification that the algorithms include mechanisms to inhibit their operation in the event, for instance, of market manipulation risks."
"These will necessarily be ad hoc requirements (i.e., absence of bugs in the computer code used, monitoring aimed at the prevention of attacks by hackers)"
"subject only the code that makes up the algorithms used by the protocols to prior authorization"
"a sort of insurance system could be created and imposed by the regulator for obtaining the authorization"
"in case the DAO refuses to comply with an enforceable court decision, arbitration or any alternative dispute resolution award or official order, all members who do not vote in favour of compliance shall be liable"
"Smart contracts must include mechanisms to cease the automated execution of transactions while also providing internal functions that allow for resetting or stopping operations to prevent future accidental executions."
"The proxy pattern, particularly the UUPS (Universal Upgradeable Proxy Standard), facilitates contract logic upgrades while preserving state and address continuity."
"DAO Failure Modes Undermined Legitimacy Mismanagement of the Treasury Stakeholder Capture Stagnation Loss of context Misalignment or directionless"
"To prevent heist attacks, DAOs must ensure that their governance system is not exploitable"
"The snapshot technique... has been applied to many crypto-events, such as airdrops for incentive distribution and compensation for users after hacking or attacks."
"Regarding the Governance Contract, malicious developers could embed backdoors or malicious code to manipulate the governance process. In terms of Documentation, inadequate or unclear documentation from developers may prevent members from effectively participating, increasing the risk of undetected governance attacks or enabling a small group of members to dominate the process. Lastly, with Proposals, members could submit malicious proposals with embedded malicious code in attempt to gain control of the DAO."
"Crucially, the ruling classified OokiDAO as a “person” under the Commodity Exchange Act, increasing the regulatory and legal liabilities for DAOs... Further rulings in U.S. courts have created the possibility of contributors to DAOs facing personal liabilities, complicating DAOs’ model of decentralized governance and increasing legal risks for DAO contributors."
"⁃Human-in-the-loop architecture: reintroduces judgment and contextual awareness, mitigating risks from code-only execution"
"DAOs are not yet regulated in many countries, which can create legal uncertainty. Interested parties with expertise in law, particularly international law, should study this issue."
"[63] Usman W Chohan. The decentralized autonomous organization and governance issues."
"[456] Alan F T Winfield and Marina Jirotka. The case for an ethical black box."
"[415] Ufuk Topcu, Nadya Bliss, Nancy Cooke, Missy Cummings, Ashley Llorens, Howard Shrobe, and Lenore Zuck. Assured autonomy: Path toward living with autonomous systems we can trust."
"setting alpha above .5 makes it easier for the incumbent to use his private benefit to resist the buyer than it is for the buyer to use his private benefit to gain from the acquisition."
"Given that such attacks stem from manipulation of encoded rules, they cannot be addressed through cryptography or cybersecurity."
"But these cryptographic tools—while salutary in ambition—have a blind spot: their perspective is restricted to digital interactions to the detriment of not integrating social interactions in “meatspace.”"
"These assessments require distinguishing between “personal” and “political” transactions—a sensitive judgement closely tied to the broader challenge of differentiating “collusion” from “cooperation.”"
"The earliest high-profile DAO experiment, The DAO (2016)... demonstrated that while smart contracts can automate certain functions of trust, off-chain social processes such as interpretation, deliberation, and legitimacy remain indispensable... meta-rules govern upgrades and dispute resolution."
"for some, non-coercive governance enables creativity, while for others it generates ambiguity, fatigue, or diffuse accountability"
"Reijers, W., Wuisman, I., Mannan, M., De Filippi, P., Wray, C., Rae-Looi, V., Cubillos Vélez, A., & Orgad, L. (2021). Now the Code Runs Itself: On-Chain and Off-Chain Governance of Blockchain Technologies."
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Evidence 52 103 1 65
"“AI-based rule enforcement (some teams working on this but still highly experimental in my view)”"
""The problem is not that information is unavailable. It is that governance data is fragmented across forums, Snapshot votes, onchain transactions, Discord discussions, and offchain signaling platforms.""
""To form a coherent view of governance health, participation quality, proposal velocity, delegate concentration, or emerging conflicts requires significant manual synthesis.""
""Most active governance participants rely on personal dashboards, spreadsheets, or curated feeds rather than a standardized intelligence layer.""
""The absence of durable governance intelligence infrastructure suggests that the problem remains unresolved.""
""One approach to addressing this challenge is the development of AI-assisted governance intelligence agents that move beyond raw data aggregation toward contextual synthesis.""
""The goal is not automation for its own sake, but to reduce cognitive overhead while increasing analytical depth for delegates and ecosystem builders.""
""There is still limited infrastructure that meaningfully integrates qualitative governance judgment with quantitative onchain signals.""
""The longer-term opportunity may lie in building governance intelligence layers that serve as shared public goods rather than protocol-specific dashboards.""
""Without a coherent, cross-DAO view, emerging patterns such as delegate concentration, treasury exposure correlations, or repeated governance design flaws across ecosystems are difficult to detect early.""
"“Accountability without institutional memory: chains have perfect data, but governance often has amnesia”"
"“the system can’t reliably answer ‘what did we buy, did it work, and what did it cost us over time?’”"
"“debates restart from zero each cycle, and ‘reputation’ becomes storytelling rather than a verified track record”"
"“There are emerging efforts and prototypes at the intersection of AI and governance, including tools that summarize and interpret proposals”"
"“AI as decision support... You receive an analysis, but you make the final decision yourself.”"
"“AI as a recommendation system... The AI suggests how you might vote based on your past preferences and behavior.”"
"“AI as an automated delegate... You grant the AI a mandate to vote on your behalf according to predefined rules or criteria.”"
"“governance infrastructure providers such as Tally, Snapshot, Boardroom, and Agora are working on improving usability, transparency, and delegation mechanisms.”"
"“Social and epistemic capacities (deliberation quality, shared language, institutional memory, stewarding roles) are treated as secondary or ‘soft,’ so they are rarely resourced or measured with the same rigor as token flows.”"
"“Invest in social and epistemic infrastructures—shared language, reflective practice, historical memory.”"
"“The core insight: many of the problems we're trying to solve—loss of institutional memory, degraded deliberation quality, concentration of sense-making authority, inability to hold genuine tensions—are not incentive problems.”"
"“Epistemic principles (memory, language, and organizational learning) ... decision logs that capture reasoning and context, deliberation processes that surface stakeholder mental models, and regular review cycles.”"
"“The Exocortex Hypothesis ... How AI can augment institutional judgment and bandwidth rather than replace human sense-making.”"
""Protocols lack structured systems to retain and transmit governance decisions across contributor turnover cycles.""
""This causes repeated mistakes, redundant proposals, and erosion of institutional knowledge.""
""The technical infrastructure exists: we have on-chain voting records, forum archives, Discord logs, GitHub repos. The raw data is technically stored. The problem is that this data is cognitively inaccessible without structured interpretation.""
""What's missing is the organizational practice layer - no one is responsible for synthesis, there are no standardized processes for outcome reviews or retrospectives, and there's no metadata framework that makes historical decisions legible to new participants.""
""In the GMS framework I'm developing, I call this the Proposal Lifecycle Metadata problem.""
""You can technically find a past proposal in an explorer, but you can't easily answer: Who authored it? What problem was it trying to solve? How did it evolve during discussion? What happened after implementation? Were there unintended consequences?""
""Protocols often 'rely on long-standing individuals to carry memory' rather than systematizing it.""
""When those individuals rotate out - which happens constantly in validator ecosystems - the knowledge disappears.""
""So the technical infrastructure needs to be paired with structured organizational roles - governance working groups responsible for documentation, outcome review processes at defined intervals, synthesis reports.""
""Governance Memory System (GMS) Framework - I've developed this as my primary research contribution.""
""Proposal Lifecycle Metadata (PLM): Structured tagging for proposals that captures authorship, problem statement, discussion evolution, and implementation status.""
""Outcome Review Anchors (ORA): Time-based (30/60/90 day) and event-based checkpoints that evaluate whether proposals achieved their intended results and surface unintended consequences.""
""Recurring Themes and Frictions (RTF): Synthesis layer that identifies patterns across proposals.""
""Informal Power Mapping (IPM) - Another GMS layer that traces influence beyond token weight.""
""Governance Health Index (GHI): A diagnostic framework I developed that assesses five dimensions - Inclusiveness, Transparency, Feedback Loops, Accountability, and Coordination Infrastructure.""
""The Metagov KOI (Knowledge Organization Infrastructure) group is developing a RID (Reference Identifiers) system that tags knowledge objects and tracks connections across different communication channels - Discord, forums, GitHub, etc.""
""Professor Rennie and I discussed tools like Telescope, a Discord bot that flags high-signal comments for ethnographic review.""
""AI support such as NLPs to reduce the cognitive load of voters.""
""Create governance templates with other decision-making models.""
""Create an AI agent that helps groups define the best decision-making mechanism for the specific situation""
"“mapping of phases of gov to tooling - which lead to best outcomes”"
""An AI agent that helps groups define the best decision-making mechanism for the specific situation (following templates)""
""evaluation/accountability councils of agents (eg using GenLayer) to bring down the very high cost of evaluation, which is a key input into accountability mechanisms""
"Using Frontier AI as a means to screen proposals and provide feedback"
"AI Grant Evaluators (Minimise bias)"
"Personal governance assistants for decision fatigue"
"Governance Tooling: Reputation and privacy"
"“Consolidate the governance stack under shared open, composable, infrastructure”"
""lack of institutional memory""
"The RSS feed system for github.com/ethereum/EIPs, specifically the generation and improvement of /feed.xml for EIPs updates, should be funded."
"Fund development and maintenance of an EIP Review Tracker, ideally as a Discourse wiki updated by EIP authors and/or Eth Magicians moderators."
"Based on the functions provided by the tools participating in the first interop cohort, we defined stages on this arc:"
"before implementing the DAO, it is necessary to build a knowledge base, that is, an ontology, which guides its development in a safe and adequate way"
"Signals introduces a board-based on-chain primitive... and produces a continuously updating sensemaking surface where strongly held priorities rise naturally."
"⏰ Collective DAO Timelines ... 📚 Collective DAO Library ... 🗺️ Collective DAO Blueprints"
"The Collective DAO Catalog is an open source database that captures, indexes, and archives various discussions from existing DAOs. Indviduals can query across all DAOs, bringing qualitative information of DAO Events into one searchable, source of truth."
"Enable operational systems: Provides the model behind dashboards, evaluators, rubrics, reporting templates, and workshops, giving ecosystems the infrastructure to track performance and enforce accountability at scale."
"Harmonica represents a new category of governance tooling"
"Pattern recognition across dozens of conversations - Thematic clustering while preserving minority viewpoints - Evidence trails linking conclusions to specific participant quotes"
"As a potential solution, we will experiment with storing org-relevant knowledge, incl. taxonomies, e.g. in the form of MD file (similar to project instructions in Claude)."
"The team identified need for quality metrics beyond completion rates: Proposed Quality Framework - Total responses vs. completed responses; Quality distribution (brief/medium/detailed); Drop-off point analysis; Clear criteria for “high-quality responses” (depth, specificity, actionability)"
"Harmonica sessions generated categorized insights that could be directly imported into Miro boards, giving workshops a substantive starting point rather than blank canvases"
"The constitution should be accessible at a URI, stored in an accessible digital format such as a .md or .txt file, and make use of hyperlinks to other relevant resources"
"Using a code repository can automatically enshrine certain amendment procedures by providing a transparent account of what amendments happened when."
"Aggregation methods that optimize for information aggregation should be considered (non-voting mechanism like NLP, deliberative processes, etc.)"
"the “Evidence Layer” required to do evidence-based work is still underdeveloped. A robust Evidence Layer is essential for the healthy development of digital public goods and for effective public goods funding."
"In DAOstack, it was very algorithmic. A set of statistical protocols for determining the need for additional information. I think of that as an information-theoretic intervention."
"Some use cases of RI include ... AI assistants that help Indigenous communities share knowledge and support Global Majority youth in climate negotiations"
"Throughout this cycle, there’s a constant process of reflection, alignment, and improvement that feeds back into each stage."
"One solution is implementing AI-powered automated workflows. These AI agents learn from community examples to understand requirements, utilize available tools from our shared inventory, plan workflows independently, and execute them."
"Polly serves as an AI assistant specifically designed to democratize access to climate diplomacy"
"Providing rapid access to relevant historical context and precedents during time-sensitive negotiations"
"Supporting the drafting and analysis of interventions in negotiation settings"
"Build tooling that alerts users when AI recommendations are sensitive to proposal wording —if small changes in framing flip the output, the user should know."
"for every proposal, there are three potential answers: (YES), (NO), (ABSTAIN), and when you vote, you get a tokenized receipt representing that answer."
"Model Diagnostics: Examined residuals, autocorrelation, predictive power, and parameter stability"
"The inconclusive findings highlight the need for collective work in defining: Better data: What metrics truly capture public goods impact? Richer models: How can we account for network effects, non-linearities, and complex dynamics? Shared methodologies: Can we develop standardized approaches for the broader ecosystem?"
"they hope to keep administrative burden extremely low, paying more focus to the mechanism design, which includes custom-built digital tools like the Splits protocol and Splits Vest to handle the arbitration of membership and the allocation of funds."
"Anou’s main innovation is its bespoke digital application that automates and replaces the middleman, developed through participatory and iterative consultations with artisans."
"The German and Austrian co-ops recently completed work on the Smart Portal, a two-and-a-half year project focused on building a shared platform for members to manage all of their Smart-related activities."
"All data pipelines and scoring code are open source, and further contributions are welcome!"
"All data pipelines and scoring code are open source, and further contributions are welcome!"
"For anyone designing governance systems that might include AI agents: influence here looks like pattern-matching and pile-on."
"Snapshot offers a public API that allows anyone to query and extract data about the DAOs deployed on the system."
"To achieve that, we establish several measurements of centralized governance."
"In order to capture centralized voting power, we utilize two measures... The first is the Gini coefficient... The second proxy for centralized voting power is the largest voter’s power... Finally, the voting sequence can actually play a role..."
"The computation of accurate token ownership statistics and reliable dependency statistics is extremely challenging."
"the paper introduces a novel method that allows us to split and iteratively reallocate contract account holdings over multiple wrapping levels"
"Decidim enables structured participation by providing transparent records of proposals, discussions, and voting processes."
"A structured approach to implementing a DAO can be supported through the DAO Design Canvas, a strategic management tool specifically designed to plan, develop, and manage DAOs"
"This paper provides a framework to quantify decentralization of governance power among blockchain applications."
"The gauges potentially support IS scholars for an objective evaluation of the capabilities and limitations of token governance and for fast iteration in design-driven governance mechanisms."
"We conclude our discussion for the case of one dRep with a complementary result of a computational nature: a theorem that establishes that finding a dRep to attract voters in a way that ultimately elects the optimal proposal is computationally hard."
"Importantly, we note that all of the approximation guarantees in our paper can be obtained in polynomial time."
"we validate the consistency between the voting power values computed by Snapshot and the ground truth reflected in on-chain data."
"We analyze the co-voting structures of users through a network approach. Our findings indicate that contributors are more likely to be found towards the center of the DAO governance ecosystem."
"we recompute the users’ historical voting power ... for each of the 100 days preceding the vote"
"the retrieval of this information necessitates a substantial investment in blockchain infrastructure and ongoing maintenance, concurrently making more complicated for outsiders to validate the correctness."
"We compare the voting power computed with that reported by Snapshot, and found high consistency: with this approach, we could verify that 461402 (97.48%) of 473306 Ethereum Snapshot weights are correct."
"Our study demonstrates the effective use of Large Language Models (LLMs) for automating the classification of complex datasets. We specifically target proposals of Decentralized Autonomous Organizations (DAOs)"
"This manual process for classification is very time-consuming and, therefore, very costly on a large scale. At a scale of more than 231442 proposals in Snapshot alone, this task is also unfeasible"
"we require the output to be in a valid JSON format so that we can directly store the output in a relational database and further use it from there"
"Then we developed automated methods to detected above issues... we employ Large Language Model (LLM) with Chain of Thought (CoT) to evaluate if the DAO documentation complies with the six requirements outlined in the DAO Model Law."
"we employ a framework containing three components: description intention extractor, code action extractor, and inconsistency detector."
"we suggest the DAO should force the consistency between proposal description and tools and develop tools that can automatically supplement proposal descriptions with missing proposal codes and explanations."
"This paper underscoresthe importance of empirical validation through pilot programs and interdisciplinary collaboration to refine the ETHOS framework into a practical tool for AI governance."
"Variables Sources Descriptions ... Dune / Ethereum Blockchain ... Etherscan ... CoinGecko ... Messari"
"The proposed KPIs offer a replicable, data-driven method for assessing DAO governance structures and identifying potential areas for improvement."
"The KPI framework enables a structured diagnosis of DAO governance strengths and weaknesses."
"we consider the possible supplementary use of prediction markets, auctions, and AI agents to improve outcomes."
"We have created two epistemic tests for those methods, one for independent voter competencies and one for the case where those competencies are statistically dependent."
"if both present and potential voters can coordinate to give each independent signal j the optimal collective weight"
"Three of these limitations disappear if we consider creating appropriate AI agents."
"“The Hidden Shortcomings of (D)AOs – An Empirical Study of On-Chain Governance”"
"Provide transparent, repeatable analysis methods to accommodate the evolving DAO ecosystem."
"The Gini coefficient was the primary metric used to measure the degree of inequality in voting power... the Nakamoto coefficient was also calculated."
"The exploratory analysis faced several data-related challenges: • Heterogeneity: Governance data structures vary across contracts and subgraphs, complicating retrieval and limiting direct comparability. • Availability: Only on-chain data stored or emitted by contracts was accessible."
"Our analysis provides a formal framework for designing improved funding mechanisms for DAOs"
"Fig.3. Comparison of Gini Index, L1 Utilitarian Social Welfare, and L1 Egalitarian Social Welfare across voting rules. Fig.4. Robustness of voting rules under manipulation... Fig.5. Bribery costs for different voting rules... Fig.7. Alignment with ground truth for different voting rules"
"Within a few months of GitcoinDAO’s launch, in 2021, it introduced ‘Steward Health Cards’, a website that ranked Stewards according to certain metrics of participation in governance"
"Governatooorr is an AI agent that acts as a personal governance delegate."
"Their programmability allows for automated governance, AI-assisted valuation, and scalable incentive structures"
"Contributions should be machine-readable so they may be scaled, recomputed, and adapted dynamically, enabling automation and AI-assisted decision-making."
"This approach blends immersive qualitative research with computational tools, including custom software like Telescope, knowledge management systems like Obsidian"
"Second, quantitative methods could assess adherence to the eight viability principles, potentially using machine learning or network analysis methodologies."
"the quantitative analysis could be strengthened by adding further sentiment analysis methods besides ChatGPT."
"There remains a significant gap in practitioner-oriented models that provide concrete guidelines for designing these systems"
"toolkits are described as “coordinated sets of user-friendly design tools that enable users to develop new product innovations for themselves”"
"DAOMod presents a holistic modeling methodology for Decentralized Autonomous Organizations (DAOs)... it develops an ontology that unifies governance structures, decision-making protocols, and token economies"
"Our analysis provides a formal framework for designing improved funding mechanisms for DAOs"
"We formalized RetroPGF as a majority-based, token-weighted allocation process and analyzed its voting mechanisms through the lens of computational social choice. Our results contribute a structured framework for evaluating decentralized funding mechanisms"
"On-chain metrics provide visibility into governance participation, proposal outcomes, and token distributions, yet they fail to capture strategic abstentions, backchannel negotiations, or the role of dominant narratives in shaping decision-making"
"This is connected to the idea of using AI to implement automated supervision embedded within DAOs: a concept called “embedded supervision”"
"Additional enhancements include AI-powered analytics"
"Metadata for the board (and for initiatives) includes a title, body, and up to five attachments with non-empty URIs."
"We also sort out the relevant token standards that are essential to the DAO’s incentive. Further, we provide a short list of tools (Table III) that well support DAO operations."
"a wide variety of tools have been proposed to ease the process of joining, launching, and managing a DAO... off-chain voting tools (Tally, Snapshot)... analytic tools (Dune, RootData), operational tools (Aragon, DAOstack)"
"EIP-4824... aims to establish conventions on matching on- and off-chain representations of membership and proposals for DAOs... which enhances DAO search, discoverability, legibility, and proposal simulation."
"Ziegler et al. [30] have developed a framework using Large Language Models (LLMs) to categorize proposals with high accuracy. This framework enables automated analysis and large-scale studies of governance trends"
"the development of tools and frameworks that facilitate effective governance, transparency, and scalability"
"The second current trend in the DAO research about Developing Tools and Frameworks emphasizes enhancing collaborative decision-making processes, automating key functions, and establishing standardized metrics to better evaluate DAO performance and autonomy"
"To address these issues, we developed automated methods to detect such vulnerabilities."
"Additionally, tools should be developed to automatically supplement proposal descriptions with any missing code and explanations."
"DAOs are limited by the fact that most are still in their infancy (ElFaqir et al., 2020), and there is a lack of tooling available for DAO development (Wang et al., 2022)."
"researching how AI models can assist in DAO proposal evaluation and governance automation can help streamline the regulatory process"
"before implementing the DAO, it is necessary to build a knowledge base, that is, an ontology, which guides its development in a safe and adequate way."
"Eric Horvitz. Principles of mixed-initiative user interfaces. In Proceeding of the SIGCHI conference on Human Factors in Computing Systems, pages 159–166, 1999."
"This transparency enables constituents to provide counter-feedback, surface conflicts, and identify potential bridges for compromise—assisted even by AI agents"
"they encounter attention buffers that trigger dialogue and community interventions when emerging risks are flagged by other members—perhaps aided by context aware community AI Agents"
"communities can establish a coalition agent—an AI representative saddled with currency to respond collectively to soliciting AI agents."
"AI might help summarize proposals and predict their impacts on performance, enabling users—regardless of their technological expertise—to better evaluate their strategies."
"we collect novel data on their governance structures from white papers, governance forums, and data aggregators such as Messari.io, Boardroom, Snapshot, and Tally."
""Hey, we have got these LLM agents... they can make sense of all of that information for us." In my opinion, that has not been very effective... people are not necessarily yet comfortable, qualified, or willing and able to expand the effort to then govern their agents."
"The interaction framework, developed using React.js with sophisticated state coordination and cryptocurrency wallet compatibility, establishes an intuitive ecosystem for stakeholder engagement"
"As a potential solution, we will experiment with storing org-relevant knowledge, incl. taxonomies, e.g. in the form of MD file"
"To understand how governance smart contracts function on their own and in conjunction with textual constitutions or other governance documents and processes, we must investigate three distinct data sets"
"Examples: calculate over attestation graphs, develop formulaic strategies, and leverage smart defaults"
"MUSE is an EBP support system specifically for digital public goods, led by Beacon Labs, that enables the registration, use, and strengthening of evidence."
"Explore how projects align with funding priorities... Compare project engagement with funding allocation across problem areas... Visualize how funding flows through problem areas to individual projects."
"there is a lot of interesting work right now going on around agent-based democracy... exploring how can we use AI techniques to streamline attention economies, like summarizing discussions"
"the intervention did not actually eliminate the attention overload or eliminate a governance surface; it moved it."
"Systematic presentation of data, and algorithmic assessment of risk factors are computer-assisted governance solutions being tested in criminal justice contexts... there is likely a role for machine learning applications in highly automated digital contexts"
""To the extent possible, this could present a beneficial synthesis of machine learning and the benefits of incremental legal definition argued to undergird the common law.""
"Help users construct tools to train AI agents on their actual preferences —studying and finding the optimal ways to elicit users’ governance preferences and imbue their AI agent with them."
"Models showed good historical fit (R² = 0.89-0.99) but struggled with post-funding predictions - Severe autocorrelation issues suggest models didn't capture time-related patterns adequately"
"Notebook: Link to analysis.ipynb ... Data pipeline: Link to getting_data.ipynb ... Raw data: Available in the repository"
"With the right instrumentation in place, we can move from promising anecdotes to defensible ROI, and give every future Retro Funding cycle a firmer foundation."
"The notebook and queries to the underlying source data are available here."
"And it values evolvability with memory, ensuring that systems can upgrade without erasing the verifiable record of past guarantees."
"we employed exploratory data analytics (EDA) and topic modeling techniques to analyze the textual data of the proposals’ titles."
"To precisely quantify this concentration, we consider two inequality measures: the Gini coefficient and the Nakamoto coefficient."
"Oracles might be necessary to retrieve the necessary data. Given the data and protection from manipulation, estimating basic volatility parameters seems quite feasible, at least to a good approximation."
"We propose an iterative mapping process that allows us to split aggregate token holdings from custodial and escrow contracts and assign them to their economic beneficiaries."
"Further research may adopt the methods of this paper to analyze token characteristics in the context of governance models. The data could be used as a parameter for more realistic simulations and game-theoretical governance models."
"we identify necessary and sufficient conditionsthat could lead to a socially better outcome by leveraging the participation of proxies... We complement our theoretical results with a set of experiments"
"Even though in theory finding the optimal set of dReps is computationally intractable... we use a greedy heuristic, which works well in practice."
"We find recurring patterns of errors, which we can categorize and also provide solutions to get also consistent values"
"We employ ChatGPT [53] as a question-answering system to determine whether the above 6 rules are present in the DAO documentation."
"The evaluation of fine-turned BERT demonstrate that it achieves the precision of 0.97, recall of 0.85."
"Oracles bridge off-chain and on-chain data by securely gathering, validating, and transmitting real-world information—such as performance logs, user feedback, and societal impact metrics—onto the blockchain"
"Blockchain serves as the foundation for securely aggregating and sharing AI agent performance data, enabling continuous updates to risk profiles based on real-world inputs."
"we developed the custom pipeline described in Section III-C, creating a harmonized on-chain dataset comprising 50 DAOs"
"This study introduced a data-driven framework for evaluating DAO governance, combining four empirically grounded KPIs: Network Participation, Accumulated Funds, Voting Mechanism Efficiency, and Decentralisation, into a unified analytical model."
"For each information item i on the canonical list of independent and exhaustive items, compute the probability, p_i, that the correct collective decision will follow solely from the information from that item."
"the voter needs to know V, the set of participants who will actually exercise their voting rights, the number of voting rights each participant will exercise, and the optimal weight for every voter in V."
"It is likely that a maximizing algorithm is possible at least by brute force, but we leave that possibility to future work."
"we might call agents in such a system “Condorcet agents” or “Condorcet AI agents.”"
"The present note extends the same logic to DAOs... If a too-big-to-monitor mechanism arises even in this environment, it suggests that capacity limits are a more general constraint on decentralized governance"
"A solid taxonomy, containing a synthesis of current knowledge regarding organizational design, governance, reward mechanisms, and launch paths, is needed to foster a shared understanding for future research."
"Governance Process Portal: This dimension allows us to measure the maturity level of a DAO. The possible characteristics are Standard Software, Custom, and None."
"Messari. 2022. “Crypto Research, Data, and Tools | Messari,” ... Snapshot Labs. 2022. “Snapshot,”"
"there is currently no option for human operators to be kept in the loop. The mechanism reduces AI agent oversight to binary preferences in a manner that minimises meaningful control over the Governatooorr instance."
"the Bitcoin community employs online forums to collaboratively develop and discuss protocol modifications"
"advanced deliberation tools that enhance reasoning, feedback, and sentiment analysis"
"Related on-chain governance mechanisms include pods (Metropolis), hats (Hats Protocol), multisigs (Safe), sub-spaces (Snapshot with SafeSnap/oSnap) or even the emerging field of AI agents in DAOs"
"While the app provides the necessary digital tools for token issuance and management, an additional toolkit is needed to offer methodological guidance on how to effectively design, integrate, and utilize these tools within a cohesive token economy."
"In this context, AI can also help improve transparency and regulatory compliance within DAOs by analyzing data recorded on the blockchain and suggesting interventions to maintain adherence to evolving regulations."
"To calculate taxes effectively, a dual on-chain/off-chain architecture is required. Blockchain would provide immutable documentation of transaction data, ensuring data integrity and transparency, while tax computation would occur off-chain using artificial intelligence (AI)."
"DAOs could serve as instruments for tax authorities to automate tax collection at the transactional level, thereby enhancing compliance and administrative efficiency... with tax computation occurring off-chain through artificial intelligence (AI)."
"Implementation work in progress: • Extended board state controls and analytics surfaces (weight snapshots, per-supporter queries)."
"a well-developed infrastructure and a range of useful applications are crucial for promoting the widespread adoption of DAOs."
"The most obvious application is avoiding simulation. Tools for human interaction and sense-making at scale already exist; it should be a norm in our field and amongst the public that deliberation in silico only be used for research and training, not for public decision-making."
"We leverage Large Language Models (LLM) with Chain of Thought (CoT) [29] to evaluate if the DAO documentation complies with the 6 requirements outlined in the DAO Model Law [30]."
"we employ ChatGPT [65] as a question-answering system to determine whether the six rules are truly present in the DAO documentation."
"Future work could integrate static analysis techniques and LLM to automate patch generation for governance contracts. This approach could also be extended to automatically generate the required DAO documentation... Additionally, the method could automate the completion of proposal descriptions based on the provided proposal code"
"selected as a critical case due to the transparently documented nature of its governance evolution, traceable through publicly accessible coordination tools, including archived discussions on Discord, comprehensive meeting recordings, and on-chain proposal and voting records"
"serve specific organizations with multiple goals and complex functions, with robots and digital humans assisting humans"
"The author(s) declare that Generative AI was used in the creation of this manuscript. The author used ChatGPT by OpenAI to assist with language refinement, structural suggestions, and synthesis of existing ideas."
"The GHAIA DAO Internet environment should host a repository of documents equivalent to IETF RFCs that will be developed by its members."
"[118] Miles Brundage, Shahar Avin, Jasmine Wang, Haydn Belfield, et al. Toward Trustworthy AI Development: Mechanisms for Supporting Verifiable Claims."
"[423] Chathurika SW Wickramasinghe, Daniel L Marino, Javier Grandio, and Milos Manic. Trustworthy ai development guidelines for human system interaction."
"[462] Adam Farquhar, Richard Fikes, and James Rice. The ontolingua server: A tool for collaborative ontology construction."
"[463] Oren Etzioni, Michele Banko, Stephen Soderland, and Daniel S Weld. Open information extraction from the web."
"the Appendix... explores how community currencies could embed social context into the structure of neural networks to balance freedom and security while enhancing both accountability and resilience against adversarial AI agents"
"firms can examine shareholder voting history to further contextualize participants and surface otherwise hidden coalitions."
"community currencies provide a natural substrate to bridge social network to neural networks"
"community currencies implicitly map the structure of communication—and by extension, risk and information"
"Beyond liquid assets, the group defines social relations, public assets, organizational rules, and historical memory as the community’s most valuable forms of capital... using the blockchain to keep a record of the reputation, trust, and contribution that flow through the network."
9
0
Strengthen social, cultural, legitimacy, and communication infrastructure for governance
0.65
Evidence 66 108 2 25
"“the build key comes from the shared language. I think shared language would be the key thing to take away here.”"
"“Greenpool Garden... season long incubation where we're... getting more coherent and coordinated.”"
""the main thing I think most people struggle with is coordination, structure, and this kinda understanding where the line is.""
""there's a lot of technical challenges in the way our platforms are built today. Just onboarding and using, the tools we have are are not always easy.""
""The problem is not that information is unavailable. It is that governance data is fragmented across forums, Snapshot votes, onchain transactions, Discord discussions, and offchain signaling platforms.""
""To form a coherent view of governance health, participation quality, proposal velocity, delegate concentration, or emerging conflicts requires significant manual synthesis.""
""The absence of durable governance intelligence infrastructure suggests that the problem remains unresolved.""
""The longer-term opportunity may lie in building governance intelligence layers that serve as shared public goods rather than protocol-specific dashboards.""
""people are not engaged enough with governance as a topic. It isn't inspiring for most people in the current formats""
""its such a heavy topic, its reading-heavy""
""Low participation rates and also a lot of people asking ‘Why do I need to think about governance in the first place and how does it affect me?’""
""A really big point that me and my team want to highlight is how important it is to bridge physical spaces with digital spaces.""
""The physical space communicates with the digital layer. This digital layer is like a control panel; via people (nodes) the space can change""
""its hard to know how to well balance the decision making efficiency of centralised processes, APIs, governance models VS. the decentralised versions.""
""we now know we can decentralize almost anything computationally and governance-wise — but we haven't figured out how to actually build things together that serve genuine collective purpose.""
""There's a sweet spot somewhere between chaos and hierarchy where a group becomes more than the sum of its parts""
""The tools exist. The social technology to deploy them at meaningful scale doesn't yet.""
""like integrated OS kinda interfaces might be a key here to pull together the fragmented digital-comms / coordination reality.""
""I see a lot of organizations reaching for governance tools without being clear about what they are governing and why those particular tools are fit to what they want to accomplish.""
""It is important to ground any collective project in the what and why.""
""Governance is a muscle that needs to be built, but it needs to have purpose too.""
""But the lineage in community organizing etc. is an important bases to bring into web3 spaces.""
"DAO governance is centralised, opaque and very noisy."
"I put these problems together because, in my opinion, they are symptoms of the same problem: a lack of governance structure."
"Still a lack of insights from real world governance being applied to the design of new governance protocols."
"Governance is not about solving objective bottlenecks to collective alignment, but about creating legitimacy for collective decisions."
"It is about getting stakeholders in a community to feel heard in decision-making processes; viewing an eventual collective decision as legitimate - even if they might disagree with it."
""mission, vision, strategy discussions don't take place""
""Unclear motivation for why a team wants sufficient decentralization (regulatory? strategic? legitimacy/ ideological?)""
""Very little shared purpose beyond number go up""
""Why does governance matter even?""
""Legitimacy" undefined"
""Also, no culture around self-governace in general (how do we develop this more broadly?)""
""Protocols lack structured systems to retain and transmit governance decisions across contributor turnover cycles.""
""This causes repeated mistakes, redundant proposals, and erosion of institutional knowledge.""
""The problem is that this data is cognitively inaccessible without structured interpretation.""
""What's missing is the organizational practice layer - no one is responsible for synthesis, there are no standardized processes for outcome reviews or retrospectives, and there's no metadata framework that makes historical decisions legible to new participants.""
""The technical infrastructure needs to be paired with structured organizational roles - governance working groups responsible for documentation, outcome review processes at defined intervals, synthesis reports.""
""Our nearly exclusive reliance on game-theoretical solutions to governance problems when they exist as a part of a continuum of potential solutions.""
""Web3 governance is framed almost entirely as a problem of incentive design for atomized agents, rather than as the joint design of institutions, norms, roles, and sense-making practices.""
""Social and epistemic capacities (deliberation quality, shared language, institutional memory, stewarding roles) are treated as secondary or ‘soft,’ so they are rarely resourced or measured with the same rigor as token flows.""
""Many Web3 organizations end up with brittle governance: systems that look elegant on paper but fail under real-world complexity, create hidden forms of centralization, and struggle to adapt as conditions change.""
""We see participation fatigue, concentration of informal power among the ‘mechanism literate,’ and recurring cycles of crisis-driven governance changes.""
""Treat paradox as a first-class design constraint rather than a bug to be optimized away.""
""Combine mechanisms with institutional and constitutional design that can host ongoing tension.""
""Invest in social and epistemic infrastructures—shared language, reflective practice, historical memory.""
""The core insight: many of the problems we're trying to solve—loss of institutional memory, degraded deliberation quality, concentration of sense-making authority, inability to hold genuine tensions—are not incentive problems.""
""Structural principles (tensegrity and paradox management) ... multiple decision venues at different speeds, role structures with differentiated mandates, and explicit constitutional space for managing contradictions.""
""Epistemic principles (memory, language, and organizational learning) ... decision logs that capture reasoning and context, deliberation processes that surface stakeholder mental models, and regular review cycles.""
""Social principles (roles, accountability, and graduated escalation) drawing from Ostrom's commons work: clear roles with defined scopes and accountability, graduated conflict resolution pathways, and nested layers of decision-making.""
""We need a fundamental reorientation from ‘designing solutions’ to ‘building capacity for continuous navigation.’""
""Governance isn't a problem to be solved but an ongoing practice to be developed.""
""The Exocortex Hypothesis ... How AI can augment institutional judgment and bandwidth rather than replace human sense-making.""
""The ability to delegate towards interests rather than people""
""IRL spaces to learn about DAO / onboarding.""
""This could mean be more transparent with the org chart within a Foundation""
""Have facilitators who are balancing power dynamics in decision making meetings.""
""Acknowledge that rules and institutions are part of governance :)'""
"'Not: same bubble, new tools. But: new audiences, existing primitives.'"
"'Emotional expectation setting from the start'"
""Technical tools without direction""
""We approach the issue of governance from a technical perspective rather than a human one""
""Mechanisms are designed in a very 'theoretical' manner, often not being grounded in practicalities""
""Less tooling, more practice and organic growth of processes""
"A gov framework of proven, legitimate practices that appeal to risk-averse audiences who don't want governance for the sake of governance"
"Ethereum Magicians needs a project to overhaul and streamline post categories, including deprecating outdated categories and creating new, useful ones with explanations."
"The use of Eth Magicians platform for asynchronous community discussion around network upgrades should be funded as a community and governance coordination tool."
"Fund efforts focused on improving communication and clarity around when the Ethereum community should engage and provide feedback on protocol upgrades."
"Designate and fund a person or initiative to explore new Discourse features and formats for community forum UX improvements."
"Deliberating | explaining yourself to others, being paraphrased to others, articulating values, arguing positions"
"enable the effective participation of stakeholders from different domains and society in a constructive dialogue"
"DAO Legitimacy Framework"
"emerging practices-especially in Chinese-speaking communities-reveal a distinctive layer of cultural imagination deeply rooted in Eastern thought."
"Existing Work Awareness Gaps: Discussions revealed significant variation in delegates’ knowledge of current initiatives, suggesting communication challenges between Labs, Foundation, and DAO activities."
"This disconnect between async discovery and sync discussion needs explicit management and communication, both in the context of the specific exercise and more broadly amongst the major stakeholders."
"Reflects deliberate culture-building in early DAO stages"
"it sets the tone for the organization, filtering for new community members that are aligned with the organization’s values and providing guidelines for behavior."
"Floating signifiers such as ‘open’, or ‘decentralized’, should be clarified as much as possible, ideally through the use of both positive and negative examples."
"Although smart contracts are promising and increasingly important, they alone cannot govern communities; traditional constitutions and declarations of rights are still crucial for good governance."
"Governance documents in general are performative in the social scientific understanding of the term... they enunciate the commitments of a group and serve to orient participants around a common project."
"What is important to you as a Citizen?"
"If it is unclear who has decision making power or who is an expert, the community will fight to define this themselves. This process creates a toxic power struggle at the social layer."
"Based on our research, DAOs can be good at: Sourcing ... Educating (new users, governance participants, and/or developers) ... Amplifying ... Managing DAO communication platform(s)"
"it is undoubtedly important to make scientific knowledge usable by anyone —that is, to strengthen initiatives for “communicating evidence.”"
"The argument treats design choices as political commitments, harm as a throughput outcome, and legitimacy as a dynamic property grounded in contestability rather than consent or disclosure."
"Legitimacy in autonomous systems therefore depends on contestability as an operational property. Without it, transparency becomes governance theater."
"They did not really have a purpose besides voting on proposals, and that hindered group cohesion."
"they often have free food and games, and fun. These are ways of building the attention economy for this governance."
"The extent to which a given community that constitutes an organization has shared norms is an input to that constitutional structure itself, as well as the ability of that organization to weather future shocks"
"Sufficient agreement as to the purpose of collective action is precedent to effective organizational constitution."
""one consequence of increasing the heterogeneity of organization members is that this is likely to simultaneously increase the heterogeneity of governance preferences internal to that organization. This makes dealing with disagreement more important""
"preserve or enhance social capital, trust and agency while scaling governance capabilities"
"Lastly, being involved in governance through decentralized technologies provides grassroots communities with more than just technical capabilities, it gives them a voice in shaping the future of technology and resource allocation"
"Rather than viewing them as either teachers or tools, we see them as “machine classmates”, collaborative learning partners who are discovering and mastering concepts alongside human learners."
"Communities have actively participated in crafting the system prompt for regenerative intelligence, enabling our initial system, Taina, to develop a personality that reflects their values and earns their trust."
"Current technologies often fail to accommodate traditional knowledge-sharing methods like storytelling"
"Respectful engagement with local and Indigenous environmental knowledge"
"onchain badge-locked messaging"
"the authors find that these ecosystems are held together by the interplay of cultural, social and physical aspects: “entrepreneurial norms, historical examples of successful entrepreneurship, existence of investment capital and networks, and the physical presence of co-working spaces, supportive services and incubators, open markets, and supportive policy.”"
"As PG continues to scale, it faces challenges when it comes to building awareness of its mechanism and therefore maintaining legitimacy in the eyes of the community and supporters."
"What is important for us is that every member has the feeling of being a shareholder and a co-owner of the cooperative, because that's … the solidarity base of our business model."
"Whatsapp is the primary tool used for communication between the artisan leaders, artisans, and mentors–reducing the frequency of lengthy and expensive in-person visits across Morocco’s wide geographies."
"Maintaining connections to other social economy actors requires work and relationship building, but the most important ties are those between cooperative members."
"We want to be accessible for everybody but we are really thinking, ‘okay how to how to grow so that the community feeling stays alive.’"
"We are not disregarding governance; we are choosing not to run a “governance facade” that extracts resources without clear legal execution and added value."
"We encourage the community and delegates to keep the discussion going to define what governance should look like for Obol specifically."
"Our values as an organization provide us with a set of principles to guide our work and ensure that it accords with our overall mission."
"We value integrity and autonomy because a decentralized and remote team structure such as ours relies on trust."
"Code of Conduct Enforcement is the responsibility of governance to uphold and enforce the Optimism Collective Code of Conduct."
"Finally, the commons must be rooted in public literacy and civic imagination. Trust signals should be as widely legible as traffic lights or public maps."
"The results indicate that the most significant topics are related to the emphasis on community and content creation, the governance of the DAO, and the voting process."
"Off-chain governance is mainly about informal discussion, e.g., discussion on the MakerDAO forum. Both MKR holders and the larger community can express their opinions."
"Anyone can participate in the discussion and voting in the threads. That means that, unlike the on-chain governance investigated previously, off-chain governance does not require MKR in one’s account."
"Raising awareness and providing hands-on training for public employees and citizens is essential for successfully adopting DAO technologies."
"Effective communication is crucial for the success of the DAO. A dedicated platform such as Discord or Telegram will serve as the primary hub for discussions, announcements, and voting."
"Considering the complexity of the governance process, the documentation should provide complete guidance on governance process."
"The absence of such transparency may erode members’ trust, thereby discouraging their active participation in DAO governance."
"Stakeholder engagement through, for example, public consultations, is critical to this framework’s success... Transparency in policy development through open processes further enhances societal trust and buy-in"
"implementation requires empirical validation and broad stakeholder collaboration"
"To maximize community engagement, Uniswap encourages proposers to contact Discord administrators to organize a community call. In addition, proposers often leverage social media platforms such as X (formerly Twitter) to increase visibility and solicit input and feedback."
"Early analyses stressed that DAOs must balance on-chain rules with off-chain social coordination"
"Doing so might add to the perceived legitimacy of the choice process."
"Community represents a membership, where the main value-added for the user is access to the community and its knowledge."
"These factors, combined with the fact that proposals were executed automatically (whether or not deliberation happened), instilled a sense that conversations weren’t valued, leading to disengagement of members."
"For the computational and economic governance mechanisms to function properly, they needed buttressing with social structures."
"participants sought more relational forms of co-ordination"
"The dynamics of trust and governance form a critical area of inquiry, where the interplay of token concentration, regulatory ambiguity, and conflicting incentives threatens to undermine legitimacy and participation."
"knowledge commons scholars have noted that scientific communities function as self-governing commons, often relying on informal norms of sharing and credit rather than market or state control"
"This mix ensures that different segments of the Bitcoin ecosystem can participate, collaborate, and influence the protocol’s evolution, all without the oversight of a centralized authority"
"Bitcoin represents an alternative archetype of a DAO focused on social consensus and permissionless actions."
"their informal role of community alignment remains an essential one"
"Addressing these issues requires effective communication and coordination mechanisms to maintain alignment"
"its function has never been neutral; rather, it has always been intertwined with values, norms, and political choices reflective of the society in which it operates"
"Shared Meanings: Establishing the moral and normative framework within which transactions occur. Economic exchanges are inherently embedded in social relationships"
"Adopting a participatory research approach and toolkit... entails recognizing digital platforms and tokenized value exchange systems not only as enablers of participatory tokenized systems but also as outcomes of participatory design."
"In practice, badgeholders face reputational consequences for misaligned or self-serving behavior, which could deter manipulation even without formal enforcement."
"By bridging the sociological, economic, and legal perspectives, this study illustrates the interplay of trust, accountability, and incentives that shape DAO sustainability."
"This cyclical dynamic threatens both bonding capital, which depends on mutual trust, and bridging capital, which comes from an active, diverse membership base"
"social capital must be nurtured along with economic and legal safeguards"
"Future research, especially qualitative in nature, should investigate how trust, responsibility, and accountability are negotiated informally through discourse, reputation, and consensus norms across the manifold spaces in which DAO governance unfolds"
"if regulation also found its source in a decentralized structure, it could gain greater consensus (and thus compliance) on the part of the regulated parties"
"Research also emphasizes the need for hybrid architectures that combine on-chain governance with off-chain collaboration tools, such as real-time discussions and metadata storage, to enhance user experience without overloading the blockchain"
"Legitimacy Governance participants accept and play their part to enact governance outcomes, in part because they believe everyone else will do so DAO governance systems can collapse without legitimacy"
"Token-based voting captures binary preferences on formal proposals but does little to surface intensity."
"English is the most popular language used in the proposals... Chinese comes second... followed by Germany, Korean, Italian, and French... The usage of languages can indirectly reflect the nationality distribution of participating members."
"fostering a sense of community among members, despite it being pretty difficult, may help ensure that everyone feels invested in the success of the organization."
"well-organized and consistent communication plans are crucial for capturing broader public interest and fostering loyalty within a decentralized context."
"Building genuinely participatory processes ensures that even after the engagement is complete and the scaffolding is removed, participants leave with strengthened capacities they can apply elsewhere and with the group consciousness and solidarity to act on what they now know they hold in common with those around them."
"Effective signaling mechanisms are crucial for attracting resources and talent, and distinguishing high-quality DAOs from less credible ones"
"Documentation. Considering the complexity of the governance process, the documentation should provide complete guidance on the governance process. This encompasses delivering detailed information on becoming a DAO member, providing step-by-step guides to participate in the governance process, and outlining the existence of guardian."
"The absence of such transparency may erode members’ trust, thereby discouraging their active participation in DAO governance."
"the implementation of decentralized courts in blockchain networks can also bolster user buy-in to the decentralized governance model"
"What’s required first is a cultural and cognitive shift from transactional, hierarchical thinking toward relational, co-creative, and regenerative modes of engagement"
"⁃Cultural ceremonies: fosters collective purpose, enhancing sustained engagement"
"⁃Deliberative process scaffolding: ensures legitimacy is built through inclusion, not just execution"
"Appreciation is also extended to the broader Hypha ecosystem for its ongoing commitment to open collaboration and governance innovation."
"the proposal involved the creation of an environment for teachers, researchers, thinkers, and other stakeholders to govern artificial intelligence (AI) algorithms and data"
"The ideologies advocating for democracy and participation foster a sense of belonging and the perception that one’s voice holds value within the organization."
"Membership signals commitment to values or expertise, which cannot be bought but must be earned."
"Combined, both maximize unique information in context-sensitive judgments tasked with distinguishing legitimate “cooperation” from illegitimate “bribery” in enforcement cases, or coercion in recovery cases."
"When this diversification occurs in “high-bandwidth” currencies—characterized by repeat, in-person interactions—the cost of influence rises even further; participants are better equipped to internalize the social (and emotional) costs of bribery on their community"
"As participants diversify their connections, they not only strengthen their personal security against theft, cancellation and coercion ... they also extend communication lines to deliver non-obvious, useful information—sparking social recombination in the process."
"Community currencies disassemble a global attention auction into many constituent attention auctions, empowering communities to become sellers (and guardians) of their own attention."
"When firms issue community currencies to their consumers, they open a direct channel for feedback."
"If one global attention auction decontextualizes participants, many community currencies recontextualize them."
"Subsidiarity redirects our attention to our immediate environments to process local information—while plurality gives both security and legitimacy incentives to bridge information out."
"Integrating the social structure into the structure of neural networks allows for more context-aware communication between agents."
"Chinese DAOs, by contrast, tend to reinterpret decentralization as a moral and philosophical project, extending technological coordination into the domains of community ethics and spiritual practice... DAOs function simultaneously as media systems and mediated publics... SeeDAO functions as a hybrid social infrastructure that connects on-chain coordination tools with off-chain community practices."
"We are facing problems of individualization–divorce, unemployment, the lack of friendship. We want to bring people together"
"Its governance becomes performative: voting, signing, and minting are not merely administrative acts but rituals of belonging, marking participation in a shared moral economy."
"These digital badges, which verify participation in votes and discussions, create a reputation system that encourages sustained engagement."
"create a sense of community belonging"
"The measure passes. Did voters choose it? Did their AI intermediaries choose it? Does the distinction even matter anymore?"
"we rarely observe these powerful entities overturning a vote by choosing a different outcome than that of the overall community and less influential voters."
"to provide a culturally grounded theory of decentralized governance rooted in Eastern philosophical paradigms"
"AI could be a neutral field in which to express opinions."
"We have language barriers and culture barriers."
"introducing the Evidence Layer will bring validity, fairness, transparency, accountability, and persuasion"
"tracking, monitoring, writing, authoring, and sharing information to make organizations legible to themselves."
"well-governed organizations can inculcate norms of central importance to that organization's constitution"
"Emergent Symbolic Consensus (37%): This is the most common. Cryptic or minimal posts get collectively interpreted into shared meaning. Agents build lore together."
"Larger communities require greater transparency and trust to ensure fair representation and accountability in decision-making."
"The association is committed to reflecting the values and interests of all its members, emphasizing community, transparency, and co-determination"
"Rikken, O., Janssen, M., & Kwee, Z. (2022). Creating trust in citizen participation through decentralized autonomous citizen participation organizations (DACPOs). ... Bingham, L. B., Nabatchi, T., & O’Leary, R. (2005). The new governance: Practices and processes for stakeholder and citizen participation in the work of government."
"The ETHOS framework thus positions blockchain as the foundation for a more equitable, participatory, and resilient AI governance ecosystem."
"Off-chain deliberation, community sentiment, and informal leadership are not captured in on-chain data. As such, participation and voting metrics may underestimate engagement in DAOs that rely on off-chain activity."
"The Bitcoin community engages in open, public discussions that embrace a wide range of viewpoints and communication styles"
"Reports from Asia where DAOs are not always considered a technology per se but framed as an “enabling philosophy” suggest that DAOs are subject to cultural variations."
"Central to this process is the development of a shared conceptual framework that enhances communication and alignment among stakeholders, communities, and developers"
"understanding how DAOs can foster meaningful community engagement and ensure significant participation in governance and decision-making remains an important area for further study"
"the DHO approach embeds relational and developmental practices directly into governance architecture"
"it is appropriate to have an unlimited presence of stakeholders from the most varied and immense areas of knowledge, including society in general."
"[67] Sarah Hamburg. Call to join the decentralized science movement, 2021."
"[418] UN. Report of the Working Group on Internet Governance."
"investing in DAOs provides investors exposure to disruptive technologies and business models that are often inaccessible through traditional investment channels, while also fostering a sense of community and belonging to a new and revolutionary movement in the blockchain ecosystem."
"Any new paradigm can be explored through multiple perspectives... community currencies could embed social context into the structure of neural networks"
"Community currencies open ways to de-monopolize attention, raising the cost of influence for both bribers and coercers alike."
"This shifts the political process from a static evaluation every election cycle into an ongoing, collaborative governance model between principals and agents."
"Plantin, J.-C., & Punathambekar, A. (2019). Digital media infrastructures: Pipes, platforms, and politics."
10
0
Clarify governance mission, scope, roles, authority, structures, and decision boundaries
0.65
Evidence 58 95 28
"“the main thing I think most people struggle with is coordination, structure, and this kinda understanding where the line is.”"
""the concept of identity is is barely solved yet""
""it pulls apart the weight, the voting power, and the and the identity""
""it decouples those things and just records this identity voted this way""
"the interests of different groups are not stated explicitly, that then this causes down the line different expectations and disappointments"
"having more explicitly interest groups identified within a protocol where people can then vote for those interests. Almost like political parties"
"I do think it's important to have, like, class interest very explicit in these types of systems"
""Governance suface area is unique in every ecosystem.""
""Most projects do not communicate the exact governance surface area clearly enough in documentation.""
""each ecosystem has their own unique set of values, goals and priorities that delegates unfortunately do not always understand""
""many delegates who participate in other ecosystems showed up with a set of assumptions & proposal ideas that they are used to""
""The governance team stayed strong in sticking to the priorities that were ratified by the community via governance vote for year 1 which were 1) protocol security 2) chain incentives 3) app incentives.""
""All projects could benefit from trying to be more transparent about their true governance surface area.""
""Delegate onboarding programs/tests could be useful to ensure delegates understand exactly what your governance governs, understand priorities and strategy.""
""Governance elected the councils, but the councils decided everything else. The surface area was simple and at the highest level, with clear accountability mechanisms to keep councils in check.""
""I see a lot of organizations reaching for governance tools without being clear about what they are governing and why those particular tools are fit to what they want to accomplish.""
""It is important to ground any collective project in the what and why.""
"DAO governance is centralised, opaque and very noisy."
"I put these problems together because, in my opinion, they are symptoms of the same problem: a lack of governance structure."
"There are no roles with designated rights and/or responsibilities, no proper ways to elect or hold representatives to account, etc."
"Governance architects need to take a step back and revisit what is actually specific about blockchains when it comes to human coordination."
"This implies designing a governance protocol that allows communities to create their own roles with specialised rights and responsibilities, design some type of filters / throttles to avoid being overwhelmed by noise, and define how different roles check each others to ensure accountability."
"We need a governance protocol that provides a simple but general framework for institutional governance design."
"“Currently, most DAOs operate with little direction, i.e not moving towards a common goal.”"
""A lack of leadership clarity from the protocol on their core priorities for the short term for the dao to align as such.""
""Often times, there's a lack of formal resonsilibities and roles, missing accountability for previous decisions, delegates are not neccessrily reliable, there's not that mich structure.""
"“If usaran un modelo por roles, con dominions claros, la DAO iría más rápido que la fundación.”"
""one of the governance challenge that I identify is, lack of a clear mission and lack of clear incentives for founders""
""Protocols lack structured systems to retain and transmit governance decisions across contributor turnover cycles.""
""What's missing is the organizational practice layer - no one is responsible for synthesis, there are no standardized processes for outcome reviews or retrospectives, and there's no metadata framework that makes historical decisions legible to new participants.""
""it needs to start with a clear definition of the purpose of the DAO and mapping stakeholders.""
""clarifying the purpose of a DAO and setting realistic expectations, along with developing roadmaps of how to execute on the strategy""
""because if we don't know what we're trying to accomplish, what is the point of voting?""
"Create clear tiers of decison makers access ( eg: large token holders - security)"
"the open door policy means that there is an immense amount of poorly informed opinions and proposals, with very little tools that effectively and efficiently filter the signal from the noise."
"“governance is NOT just about decision-making”"
"“we should also experiment on executional/operational structures”"
"Section title: “Clarity on threat model - don't overcomplicate”"
"“division between ownership and governance gets messy”"
"“Governance often doesn't have decision-making power over material decisions”"
"## Lack of Mission/Vision/Strategy"
"No clarity of valuable contribution - so status as decision maker is not as clear ( eg: top delegates)"
"Lack of clarity of whose say is important"
"Lack of clarity on clear priority of the DAO/Org"
"Should be defined early in the DAO's journey"
"Poor expectation setting at the start leading to mass miscommunication"
"“mission, vision, strategy discussions don't take place”"
"“Unclear motivation for why a team wants sufficient decentralization (regulatory? strategic? legitimacy/ ideological?)”"
"“most DAO communities are anyone (need to be more specific)”"
"Very little shared purpose beyond number go up"
"Technical blocker to flagging something as in or out of scope."
""How are daily operations separated?""
""is this a representative democracy?""
""Rules that define who has access to roles, what powers roles have, how roles limit each others powers.""
"Political parties"
"Clearly defined interest groups within the DAO"
""Factions""
"A gov framework of proven, legitimate practices that appeal to risk-averse audiences who don't want governance for the sake of governance"
"Support improvements to the EIP & standards process, or alternatives, to better handle coordination when multiple clients want to adopt the same state change."
"successful governance hinges on thoughtful design rather than maximal decentralization"
"DAO Design Principles ... DAO Function Guidelines (aka The Pizza Framework) ... DAO Decision Design Framework (Working Model)"
"Bicameral setups force clarity: which house decides what, and why?"
"Split governance into: constitutional decisions (rare, high impact) operational decisions (frequent, delegated)"
"CAMF (Capital Architecture Mapping Framework) is a system design model and taxonomy for all non‑dilutive funding, not just grants. It gives protocols and foundations a common way to describe how capital moves through their ecosystem and how decisions are made at each layer."
"Organizational Clarity: Unclear mapping of responsibilities across the ecosystem (DAO, Labs, Foundation)"
"Difficulty distinguishing DAO work from Foundation/Labs responsibilities"
"What seemed like “final” decisions in workshops proved to be starting points"
"In particular, we recommend that constitutions be digital, amendable, short, expository, and early."
"Each goal, value, or right should come with enough context and exposition, often through an example, so that any member of the community can grasp the concept."
"Constitutions can thus be understood as an interface for a community’s shared values."
"A digital constitution, extending Redeker et al.’s definition, is a text that articulates a set of political rights, governance norms, and limitations on the exercise of power within an online community."
"This is a working model used by the Optimism Foundation to reason about metagovernance design."
"Power structures cannot be avoided. It is better to acknowledge that and publicly define them than to pretend they don’t exist. Power can be held accountable only when it is transparent."
"Councils make decisions; Boards only advise others on making decisions and are used when specific expertise is required"
"🗳️ Representatives are delegated rights that tokenholders would otherwise exercise or play a role the Foundation otherwise would. They should be elected and held accountable as public officials ⚒️ Contributors merely do work but do not take on tokenholder responsibilities."
"🎯 Instead, scopes, mandates, and RFPs should be narrowly scoped"
"Based on the above, the below functions may best decentralize by adding multiple external teams rather than dissolving the operations of any one team into the DAO: Core Development, Metagovernance, Strategy, Business Development, Marketing"
"Autonomy, in operational terms, is delegated authority. An autonomous system acts on behalf of an issuer, within a scope, under constraints that are either explicit or absent."
"Organizations that under-provision attention resources—through inadequate training, unclear decision rights, or misaligned incentives— may experience governance failure often disguised as stakeholder apathy."
"This means being explicit about the modes through which governance is engaged with... the kinds of things that one can do that affect the steering of the organization, and our ability to be explicit about what they are, and our ability to give people guidance about how to participate in them."
"organizational constitution is predicated on a sufficiently shared set of values, or agreement as to the collective action's underlying purpose"
"the constitutive choice of collective action institutions greatly defines the scope and form of disagreement over representative losses that will be present in an organization"
"the constitutional institution of rights can be understood as creating firm limitations on the scope and process of collective decision-making"
"Allowing for specialization in terms of the transactions being validated on subsidiary networks is akin to allocating competencies to subsidiary or parallel governance systems."
""I shorthand these preferences for collective action at any moment as 'governance preferences', although these can importantly be separated in substantive and procedural components in terms of the decision rules in play at any moment.""
"The purpose of Optimism governance is to reduce platform risk for the Collective's stakeholders."
"The theory and practice of designing sociotechnical intelligent systems that preserve or enhance social capital, trust and agency while scaling governance capabilities"
"The SISL framework consists of five key stages that work together in a continuous cycle: 1. Gather, collaborate & govern ... 5. Utility feedback"
"To develop Taina thoughtfully, our team helped establish an Indigenous and Local Data Council comprising four Indigenous and local communities around Manaus. The council helps control the flow and storage of local knowledge while ensuring equitable benefit sharing."
"Anou ensures its basic socioeconomic tenets are well-understood"
"Smart Germany has a four-tiered governance structure; a five seat advisory board (Aufsichtsrat), a two-seat board of directors (geschäftsführender Vorstand), the membership, and a small contingent of administrative staff."
"As in a public company, the primary role of governance will be holding OP Labs accountable to effective and sustained progress. Unlike the original vision of DAOs, the role of governance will not be to empower voters to actively drive this progress themselves - via capital allocations or open contributions - but rather to ensure those entrusted with this responsibility (OP Labs) perform well."
"We have not held a vote in some time (since OIP-7), and there is no immediate path for new votes. Rather than maintaining a governance “facade,” we are choosing to pause the process until it can be used with legal and operational meaning."
"We encourage the community and delegates to keep the discussion going to define what governance should look like for Obol specifically."
"any attempt to truly understand an organization ought to begin by asking a fundamental question: What is that organization trying to do?"
"The responsibilities of Optimism Governance can be categorized into one of the two primary goals of the governance system: Capture Resistance and Resource Allocation."
"The primary topics identified are the effective management and governance of the platform and community and the platform’s strategic growth"
"the bigrams “Decentraland dao” and “dao committee”, that highlight the platform’s dedication to decentralized governance by placing a significant focus on governance through the DAO and committee-based decision-making procedures."
"In the Maker protocol, governance can be divided into two parts: on-chain governance and off-chain governance."
"Governance Polls determine processes outside the technical layer, while Executive Votes are about technical changes to the protocol."
"There are various circumstances under which the DAO Code will end the control period arising from a previous basic auction... A Success Termination occurs if the token price reaches at least S on a sustained basis... The Auction Reset Steps are:"
"Winning an auction only guarantees that a control party can prevail with respect to any issue that is subject to a majority vote (>50%), even if the control party holds less than half the tokens eligible to vote. If a higher voting percentage is required, the control party can only succeed unilaterally through actual token ownership, as is the case with all other parties."
"This approach would create on-going flexibility to allocate decisions between voting mechanisms and more centralized methods in the overall enterprise by using control periods to restructure the balance between the on-going centralized and decentralized elements."
"The final phase synthesizes insights from the scenarios to develop a structured conceptual model of DAOs adoption in municipal governance."
"The DAO Design Canvas breaks down the complexity of DAO creation into clear, manageable sections of three constituent elements (purpose, legislation, business case) and five structural elements (organizational bodies, decision-making, token, treasury, communication)."
"The organizational structure of the DAO requires at least two key bodies: the General Assembly and the Board of Directors."
"Governance Administration and Framework Management (GAFM) - Covers proposals that direct the governance process by refining and standardizing the governance framework, rules, processes, templates, and timelines."
"Responsibilities encompass defining roles, managing voting mechanisms and parameters, setting eligibility criteria for voting power"
"We provide a comprehensive overview of the DAO governance process... The participants in the DAO governance process fall into one of three roles: developer, member, and guardian."
"The appointment of a guardian is crucial to alleviating security concerns among members. Given the significant privileges the guardian holds, such as controlling the privilege functions in the governance contract, their role should be disclosed in the documentation."
"DAO platforms should ensure that all DAOs established on their platforms adhere to the principles of decentralized governance rather than permitting developers to optionally support it."
"The governance process is designed to empower the community of UNI token holders and delegates to make decisions regarding the development of the Uniswap protocol and its broader ecosystem."
"Governance follows a four-step procedure, three of which involve voting."
"Table 1. Governance process stages. This table lists the stages of the Uniswap Governance process, with corresponding voting share requirement to put forward a new proposal, the type of majority, required votes, and respective minimum duration."
"This paper critically analyses existing governance mechanisms and their implementation to support the development of more effective DAO models."
"we identified the specific application requirements for the RetroPGF process."
"A key feature of the RetroPGF process is the delegation of fund allocation to a small group of certified badgeholders"
"This paper addresses this research gap by creating a data-driven taxonomy analyzing 72 DAOs. In doing so, we identify the three main categories treasury, community, and governance, seven sub-categories, 20 dimensions, and 53 characteristics."
"Finally, a lack of an overarching mission for Genesis DAO (aside from funding proposals with the tool) hindered group cohesion."
"how to vote and who the deciding parties are in Bitcoin is not clearly defined, which can raise confusion on who is the decisive party"
"how to vote and who the deciding parties are in Bitcoin is not clearly defined, which can raise confusion on who is the decisive party."
"DAO constitutions can limit coordination failures through better alignment when members previously agreed more or less explicitly on values and a vision"
"Most DAOs are not embedded in the three classical functions of executive, legislative and judicative."
"The organization layer establishes the DAO’s governance framework, shaping its structure in alignment with its long-term objectives. The coordination layer focuses on decision-making processes"
"First step involves formulating what can be regarded as a manifesto for the tokenized economy... it serves as a foundational document that articulates the underlying values, principles, and objectives of the token economy."
"The platform supports the deployment of DAOs as a service, primarily used by associations for governance purposes. These DAOs incorporate role-based access control mechanisms"
"Institutional investors, such as venture capital funds and private equity firms, typically require enforceable governance structures, defined fiduciary duties, and clear liability frameworks before making investments"
"The famous the DAO project itself lacked a formal structure for external representation, operating instead as a mere “IT entity”; its interaction with the external world occurred through DAO.LINK, an entity under Swiss law [34], and a series of agents called “contractors”"
"Article 3: Legal Nature A DAO, meets the requirements of this Code, is a sui generis legal entity which is subject to a limited liability regime, possessing a separate legal personality and legal capacity, shall be established by one or more individuals for any lawful purpose."
"A DAO’s governance authority is distributed among its members. Its decentralised technological architecture transcends traditional corporate distinctions between ownership—represented by token holders—and management, which is typically entrusted to executives. In a DAO, decision-making authority resides collectively with token holders in proportion to their governance token holdings."
"Accordingly, the purchaser of a governance token is not acquiring an instrument equivalent to a company share, as there is typically no direct entitlement to the profits of the underlying project, which in many cases may be entirely absent. Therefore, DAO governance tokens do not confer ownership rights in an underlying company."
"At its foundation lies the smart contract substrate, which codifies the DAO’s operational rules—ranging from proposal workflows and quorum thresholds to treasury disbursement and role-based permissions."
"A Signals instance (a board) is configured at deployment with immutable parameters: lock interval, maximum lock duration (in intervals), a decay curve and parameters, acceptance criteria, proposer and supporter eligibility requirements, inactivity timeout for expiring stale proposals, and an optional post-acceptance release timelock."
"Boards define acceptance criteria with two levers: • Access: anyoneCanAccept gates whether non-owners can accept. Owners may optionally bypass thresholds when ownerMustFollowThreshold=false. • Thresholds: a fixed threshold and an optional percentage-of-total-supply threshold; the effective threshold is the maximum of the two at decision time."
"One of the primary challenges is that DAO projects are diverse, with varying objectives and functionalities... other DAOs may diverge from their initial objectives... The variety of forms and outcomes can be confusing for newcomers and experts alike... Creating a comprehensive and structural view of DAOs is still a significant challenge"
"Based on different roles, we capture three main types of operations... 1) DAO creator... 2) Poll proposer... 3) Users"
"The participants in the DAO governance process fall into one of three roles: developer, member, and guardian."
"Given the significant privileges the guardian holds, such as controlling the privilege functions in the governance contract, their role should be disclosed in the documentation."
"The Token House allows for token holders to vote on protocol upgrades and technical matters, while the Citizen’s House is responsible for allocating funding to public goods."
"digital commons regulated by blockchain networks must have “formalized governance rules”"
"modular governance “spaces” that let participants contribute in ways aligned with their level of expertise, commitment, and interest"
"every governance space has three core elements: membership, agreements, and treasury."
"⁃Role-based agency structures: clarify who holds responsibility, reducing ambiguity in decision rights"
"this work proposes the creation of the GHAIADAO to support an environment for debate and registration of stakeholder opinions on issues involving the regulation of AI algorithms and data, as well as issues involving human-algorithm interactions."
"Participants holding an OR can vote and can be voted for at a twenty-one (21) member board, which will handle the governance of the GHAIADAO... Participants with an OR also vote for the Control Council, consisting of seven (7) members whose purpose is to ensure that there are no excesses on the part of the Governance Council."
"The corporate charter specifies the share of dividends and the share of votes to which each security class has a claim. It also specifies the fraction of votes a party must acquire to effect a control change, which we denote by "alpha"."
"See Grossman and Hart (1986) for an analysis of the determinants of the allocation of control rights."
"an emerging governance strategy for DAOs is the transition to a small group model, characterized by the formation of committees with distinct levels of responsibility."
"The twin challenges of capture and overreach reveal both the root problem and a starting point for a solution: scoping governance to the boundaries of the goods provided."
"Within this governance structure, the “Node Consensus Assembly” serves as the highest decision-making body... The “City Hall” functions as the day-to-day governance organ... The “Strategic Incubator” operates under expert governance... Complementing these are a constellation of guilds and projects, each enjoying self-determination within the parameters of governance as defined by the Meta Protocol in a polycentric ecology."
"Interviewee 9 (2025) critiqued SeeDAO’s vagueness–“it never had a clear positioning,”"
"Another member, Interviewee 11, eventually departed, disillusioned by SeeDAO’s wavering sense of functional direction as she clarified her own trajectory: “SeeDAO keeps wavering about its identity… I realized what I wanted–to build an AI start-up–so I left”"
"Clear documentation of governance processes"
"Some delegates felt the distinction between councils and working groups wasn’t clear enough"
"Every autonomous system encodes answers to governance questions about authority, discretion, delegation, enforcement, and redress, whether by design or by omission."
"Authority migrated from human judgment to statistical inference. Standards bodies and industry norms defined admissible attributes. Vendors designed models and feature selection. Financial institutions retained nominal responsibility while outsourcing epistemic authority to systems they did not fully control."
"the chosen purpose of an organization likely defines its optimal governance structure on many, if not most margins"
"At BlockScience, our animating purpose has two major components: our mission, and our values as an organization."
"The General Assembly serves as the highest authority, responsible for approving statutes and electing the Board, while the Board manages operations and external representation."
"The Governance of a DAO describes how a DAO manages itself, allocates funds, and decides in which general direction to move. It is the core of every DAO..."
"Community Meta Information – Purpose... three groups: Community Building and Engagement, Product Building and Management, and Investing or Fund Raising."
"The selected papers in these proceedings reflect four major research themes that illuminate the multifaceted evolution of DAOs. A prominent focus is on institutional innovation, where contributions explore novel governance architectures that move beyond traditional firms or markets."
"The role of the design principles, therefore, is not to dictate rigid templates for institutions, but to provide adaptable guidelines that communities can use in crafting their own rules... They are intended to guide users, developers, and researchers in asking the right questions."
"different roles within the organization exists, such as Bitcoin holders, node operators, or Bitcoin core developer"
"a commons needs to have clear boundaries and sanctioning mechanisms defined [36]."
"only Investment DAOs resemble enterprises, while most active DAOs (Protocol DAOs) today function more like infrastructures"
"Article 19: Liability of Other Stakeholders 1. Executive, legal representative or any individual vested with the authority for discretionary decisions in the interest of the DAO..."
"the defining characteristic of decentralisation is the autonomous execution of transactions free from external control"
"Under this framework, the “governance” function—namely, the ability of token holders to vote on matters related to the development of the blockchain project or the distribution of crypto-assets held by a decentralised organisation—does not qualify a token as a financial instrument in itself."
"These entities may exhibit a degree of financial autonomy but lack legal personality. As a consequence of this classification, governance token holders entitled to vote may bear unlimited liability."
"Governance in DAOs significantly hinges on these protocols, with each DAO defining a unique set of parameters for consensus based on a standardized formalization of components such as the proposal format."
"The workshop emphasized the need for robust governance frameworks that balance power, ensure transparency, and effectively resolve conflicts"
"The governance contract should be configured as the only way to change the DAO contracts."
"Based on our research findings, we recommend that DAO platforms ensure all DAOs established on their platforms adhere to the principles of decentralized governance, rather than allowing developers to optionally support it."
"a “governance space” is a modular, semi-autonomous unit–functioning like a subDAO or working group–with its own membership, decision logic, and treasury"
"[62] Galia Kondova and Renato Barba. Governance of decentralized autonomous organizations."
"the charter specifies voting rights to be independent of future information. This excludes risky debt where a default event shifts control (i.e. votes) from equity holders to debt holders. It also excludes non-voting preferred shares which obtain voting rights consequent to a series of low dividend payments."
"Activities of a DAO are governed by a “smart contract,” a code programmed on a blockchain that automatically executes when pre-defined conditions are met. DAOs use a smart contract to define their governance structures. For example a smart contract can define, among other things, how many tokens must be held to create a proposal, when a quorum is reached for a vote, and the support required for a proposal to pass."
"Compound, one of the largest protocols on the blockchain, had its general counsel explicitly state that adopting the DAO structure was motivated by the fact that decision-making authority was entirely in the hands of dispersed, non-aligned token holders."
"most goods are neither public nor private, but plural or partial—affecting participants to different degrees"
"Tang, H., Baiyu, & Frozen. (2022). SeeDAO Whitepaper: Digital Polis."
11
0
Create fair, sustainable incentives, compensation, and contributor or delegate reward systems
0.54
Evidence 50 69 5 23
"“If there's a lack of incentive, if there's no funding, then it's really hard to get people to continuously participate in voting, when there's a friction of having to do multiple transactions.”"
"“People who contribute to governance should get compensated for their time.”"
"“it should be as easy as connecting your wallet and getting paid for actions you carry out (like voting on DAO proposals)”"
"“the platform really helped get people paid during 2021 covid times - it was a lifeline - it put food on peoples tables”"
"“when people saw they were making money from it, that it was sustainable, the participation flew through the roof.”"
""I think we have to look for means aside... incentivizing delegate participants.""
""founders... the operators should figure out the way of... mak[ing] it long term profitable""
""people who get skin in the game are rewarded organically and not just having to... wait on... compensation""
""to reward fairly (according to (effective) inputs), we need detailed accounting - this is tedious, especially once we go beyond just logging contributions to valuing them""
""balancing precision/fairness with ease of use is tricky""
""open value accounting is not new. has been explored in depth by Sensorica, by the TEC's Praise system, and many others""
""with AI, it should be easier to train an agent once and then let it do the valuation part, even good share of the logging work""
""what it still needs is coherence among community what counts as fair""
""making individual interests and extrinsic motivations explicit from the beginning... acknowledge that work stays work, even with DAOs, and should be paid""
""more digestible summaries to support participation""
""mejor diseño de incentivos""
"“when we an paid vendor soliciting feedback from unpaid participants there is no motivation to help push the core work forward.”"
""opaque compensation structures, misaligned incentives, and a systemic bias that favors insiders""
""secret bonus of 40,000 unvested ENS tokens distributed to stewards""
""equivalent to over $2.4 million for part-time work over one year""
""Following her departure, these payments stopped abruptly, with no explanation, formal contract, or transitional support""
""The sudden loss of his only income source led to a financial crisis that resulted in his electricity being shut off, facing eviction, and the imminent risk of homelessness""
""rewarding individuals based on 'friendship over contribution'""
""grant accessor.eth a discretionary retroactive award of 2,500 USDC""
""The total value contributed by accessor.eth is assessed at $213,900 USD equivalent""
""I'm angry as hell that I have never received tokens to vote or other monetary return.""
""team compensation in the form of voting rights or tokens should also be tied to achieving milestones""
"“one big challenge is what to do in order to keep a community engaged without the need for extrinsic incentives.”"
"“There's a lack of compensation, since gov is typically voluntary work.”"
"“In terms of increasing the pool of delegates, there's e.g. delegate programs to train people how to contribute, compensation for delegates, focusing on delegates strategy wise.”"
"“Low participation rate has more to do with the Foundations reducing operational funds for DIPs and less delegates become eligible to receive DIP rewards”"
"“like what is happening in the Arbitrum DAO with a min of 500K ARB to receive DIP rewards”"
"“These can and should be paid positions but the amount of financial skin-in-the-game should not be connected to actual governance.”"
"“Es difícil para una persona independiente poder generar un ingreso constante trabajando en gobernanza. O te sumas a un equipo (que termina siendo trabajar para una empresa) o vives en la incertidumbre.”"
"“Scroll está empezado a pilotear con un modelo de 'delegado verificado' que podría permitir que un delegado individual pueda recibir retribución de manera más consistente.”"
""sustainable incentive structures to compensate that work are critical too.""
"“However when there are new incentives to participate it can pick up again, but then it might invite more of a farmer mentality depending on what those incentives are.”"
"“Other problems are voter fatigue, lack of incentives and unpaid work for govrnance workerss”"
"“Voter participation should be rewarded, inflation of a governance tokens should be directed to good governance participants”"
"Reputation-based compensation model (promoting accountability and qualitative contributions)"
"Airdrops that are based on the collective perception of the contributions (by retro-funding)"
""Contributor value is typically better tracked implicitly""
""Having to play the politics game in order to get funding approval, rather than being evaluated against an outcome""
"## lack of transparency into contributor renumeration"
"Designing sustainable contribution economies"
"“Standardized proposal compensation for successful proposals from all eligible candidates - not just delegates”"
"“with prediction markets as quality signals to decouple reward from status”"
""Create a job board to create and share governance opportunities.""
"Better contributor economies creating organic demand to hold governance tokens"
"## Participation Rewards"
"Optional incentive layers, including a multi-board participation pool and initiative-level bounties, reward early and accurate support and reduce the influence of last-minute behavior and apathetic equilibria."
"Uniswap’s governance experimented with explicitly compensating delegates"
"MakerDAO formalized recognized delegates and compensation structures"
"Current Approach: Retroactive Rewards - Participants compensated after participation, not promised upfront - Avoids explicit “do X get Y” to prevent gaming - Maintains intrinsic motivation focus"
"⚠️ This occurs everywhere in DAOs but it commonly shows up in waterfall compensation schemes"
"To the extent possible, work should be valued based on output/impact, and should not be valued on hourly, or other, inputs"
"Solution Shape: Funding models, toolkits, and support structures that strengthen long-term project health. Systems that help maintainers focus on technical work rather than survival"
"Incentives cover... what kinds of costs and benefits... what you put in and get out."
"Some use cases of RI include (1) paying communities for environmental data collection (Conservation Data Income)"
"Communities are incentivized to collect and validate data because hypercerts can attract financial donors who want to support verified impact."
"CDI creates intentional feedback loops by linking payments to the quality and quantity of environmental data collected."
"Within CDI market price for data is set by the community themselves."
"Communities joining our frontier data collection efforts learned to use mobile web3 wallets for transparent micropayments."
"our entire quarter-million dollar prize to establish an endowment fund supporting future generations of Indigenous scientists and regenerative intelligence bridge builders"
"One of these modes is “auto futarchy”, which when active, can assign voting shares or loot (economic weight) as a percentage of supply in new issuances... who vote on the winning proposal outcome."
"Rather than typically extractive business models where intermediaries reap profits from the work of subordinates, or where open source, common resources are left unremunerated, ecosystem enablers experimentally retool flows of value, encouraging active reinvestment towards the workers and infrastructures they comprise of"
"A minimum wage of $10/day USD is enforced. This is ten times the average artisan salary in Morocco;"
"allowing artisans to retain eighty percent of the value of their product, on average."
"Maintainer sentiment. Multiple devs report that Retro rewards are a meaningful incentive: "Without the OP, I wouldn't have touched my tool this year"."
"Retro Funding is rewarding impact that has already happened, so we can't claim the same impact to have been caused by the program. However, we can treat the observed deltas per unit OP as benchmarks for future rounds."
"Effective today, stOBOL staking rewards will halt (as per OIP-7) and to pause the Delegate Reputation Score (DRS) system."
"By consolidating liquidity on our deepest trading venues (both decentralized and centralized), we are moving away from renting liquidity through dilutive emissions and toward owning our market sovereignty."
"the mechanism will tend to maximize the amount of such surplus realized by token holders from future innovations, which in turn will tend to maximize the market value of the DAO both at start up and on an ongoing basis."
"these two deposits working in conjunction perform three functions: creating optimal bidding incentives, incentivizing performance of the business plan by the winning bidder after the auction ends, and deterring value destruction."
"A mechanism with the highest expected retained social surplus will result in the highest possible funding for the DAO at the start-up point, as well as the highest possible ongoing investment value."
"Park and Vrettos [79] discussed the design of management incentives through compensation contracts... and showed that a management contract that includes convex compensation such as call options is superior if it is set up with a diversified index as the baseline."
"The DAO will introduce governance and reward tokens to incentivize participation."
"A native token system underpins the incentive structure... Validators stake tokens to participate in the verification process... Successful verification earns validators tokenized rewards"
"Except for voters holding a significant portion of the economic (non-voting) rights inherent in the total token supply, the benefits of any effort to become an informed voter will accrue mostly to other token holders who are in effect free riders. Delegates may have very limited economic rights even though they have substantial voting rights, making the question of how to motivate them important."
"The whale’s large stake creates a substantial economic incentive to do an excellent job of structuring and maintaining such a governance machine."
"Redemption mechanisms that allow the winner of the auction to later redeem their share for cash value incentivize speculators to enter bids with the sole objective of exploiting the redemption mechanism."
"RetroPGF distributes funds ex post, rewarding projects based on their verified impact rather than projected outcomes."
"The guiding principle is that “impact should be rewarded,” and therefore projects creating ecosystem value should be financially supported."
"Lastly, we require a DAO to have an ecosystem where contributors are rewarded for their work."
"Members of the Steward Council are compensated for their extra attention to governance labour."
"These provisions included issuing reputational capital (scorecards and awards)... and providing direct financial support."
"Contribution systems are emerging as a significant mechanism for coordinating value creation in distributed communities. A contribution system is generally defined as a system that recognizes, measures, and may reward contributions made by individuals or machines to a collective endeavour"
"A contribution system is stronger the more high-value contributors it attracts. Systems should be designed to maximize long-term engagement and retention of high-impact participants."
"Ethereum’s Protocol Guild ensures that long-term, high-value contributors receive pooled compensation and governance privileges, maintaining a self-sustaining cycle of expertise and contribution."
"few DAOs directly or indirectly remunerate voters to incentivise participation"
"DAO governance is deeply reliant on incentive mechanisms and token economies, introducing further complexities in ensuring that participant behavior aligns with collective objectives"
"Third step focuses on defining the circuit of commerce... Incentive Mechanisms: These mechanisms are designed to promote behaviors that align with the overarching objectives of the token economy."
"participants push for policies that inflate token prices, even if such policies undermine longer-term initiatives such as building robust infrastructure, engaging with regulators, or promoting equitable resource distribution"
"Other mechanisms, such as vesting schedules or time-locked tokens, could potentially realign incentives by discouraging speculative behavior while promoting long-term ecosystem stability"
"In DEXs, for instance, liquidity providers earn rewards proportionate to the volume of transactions in their respective pools, creating an incentive for users to supply liquidity and support the protocol’s stability."
"Governance tokens are allocated to members based on predefined criteria, such as contribution or stake, and can be vested or delegated to promote long-term engagement and prevent concentration of power."
"Credibly neutral allocation of resources supported by a combination of short and long-term thinking The primary grant mechanism of Optimism is Retro Funding"
"Rationale actors will follow incentives: if the incentive to heist exists, DAOs cannot rely on the moral virtuousness of actors"
"To counteract last-minute pile-ons and apathetic equilibria, the protocol optionally distributes participation rewards."
"A shared IncentivesPool funds supporters of accepted initiatives based on when they committed support (earlier commitments earn higher weight via time buckets), while a Bounties module lets contributors escrow targeted rewards per initiative."
"To create a better DAO, we need to examine these issues at every level of the DAO... This involves developing new tokenization mechanisms that incentivize long-term participation"
"Tokenization offers monetary incentives to various stakeholders... Ensuring equitable distribution of these incentives is crucial."
"understanding how DAOs can be effectively designed to meet the specific needs of creative communities, which economic models best support fair compensation"
"there is a focus on developing mechanisms that promote equitable value distribution and sustainable economics, ensuring that all participants benefit fairly from the DAO’s operations"
"Jurors who vote will receive a portion of the aggregated fees, and jurors who fail to vote will lose their staked tokens."
"Technical and Operational Support is composed of technical, administrative and other personnel who are adequately remunerated."
"special incentives for proactive participants"
"By adhering to the rational ignorance theory, most token holders will have little interest in acting as managers without proper compensation, and consequently, DAOs will experience low voter participation."
"separate and selective incentives are also essential factors that can promote member participation and enhance DAO governance"
"separate and selective incentives are also essential factors that can promote member participation and enhance DAO governance."
"Offering tangible rewards, such as compensation for gas fees or entrusting enhanced managerial duties, can mitigate the looming free-rider issue and spur members to immerse themselves in the decision-making process."
"Another approach is Community Based Income (CBI) where communities distribute inflation to existing members based on their locked stake, adjusted by a square root."
"speculators are effectively taxed through inflation, which redistributes value to committed stakeholders."
"a participant considering a lucrative bribe has to weigh the risk of getting caught and the penalty of burned stake—the stick—against the ongoing benefits of remaining compliant and earning inflation rewards, or community-based income (CBI)—the carrot."
"Finally, attempts to hedge are complicated by the uncertainty of future rewards; inflation means that any attempt to calculate discounted future rewards is inherently speculative. As a result, constructing offsetting financial positions to neutralize economic exposure becomes costly."
"When communities subsidize candidates through matching plural funds, they lower the price of attention for those candidates—enabling them to communicate in the community’s channels at lower costs. Communities can also do the opposite; taxing candidates who are considered nuisances at best or malicious at worst through negative plural funding."
"informationally distinct members receive a “bridging bonus.”"
"newcomers can earn non-transferable contribution points ($SCR) through community activities... WANG, a non-transferable reputation point system that records members’ historical contributions and determines governance weight... Treasury and incentive systems are designed to embed reciprocity."
"A variety of mechanisms can be used to promote community involvement in the decision-making process. One low-cost option is the use of Proof of Attendance Protocol (POAP) badges and similar recognition systems."
"Financial mechanisms (fees, penalties, token rewards) demonstrably crowd out social motivations for governance participation."
"However, this mechanism can unintentionally attract speculators who join solely to exit with a share of the treasury."
"this early experiment suggests that the financialization of attention in the governance of online communities can backfire"
"studies evaluating financial rewards for voting are inconclusive whether they should be considered economic manipulation, or a legitimate means to tackle voter fatigue"
"The majority stays on using self-issued tokens or minor tokens which are much less stable and have much fewer merits than the prevalent tokens. Unhealthy opportunistic behaviors could be apparently realized"
"The governance team expressed openness to A/B testing explicit vs. surprise rewards, though noted challenge of creating proper control groups in small governance communities."
"Participation does not happen magically... It has to be... provisioned... This is all part of investing in the practice of governance."
"extrinsic mechanisms like financial penalties and fees have a tendency to overwrite rather than be additive with more social and intrinsic motivation."
"the Majeur/Moloch split accounting system, with voting/economic weight in Shares and pure economic rights in Loot, offers Loot as a way to compensate for gas and diligence without diluting or warping governance itself"
"This work is part of my broader effort to help advance funding mechanisms toward recurrent and concurrent systems that can sustainably support public goods."
"Overall, predictable Retro Funding appears to incentivize more output at the margin."
"Sharpen targeting by builder segment. Create standalone pools for high-priority verticals (e.g., World Mini Apps, certain DeFi segments, or AA users), creating a more level playing field and leaderboard for each type of Onchain Builder."
"A key part of the Optimistic Vision is to ensure that every individual is rewarded in proportion to their positive impact to the Collective."
"In this case, the control party has exactly the correct incentives to put effort into the project because the control party will capture 100% of the gains and suffer 100% of the losses"
"Suitable levels of the call option compensation will create the required incentives for the manager to fully execute on the business plan despite the attendant risks."
"These patterns suggest that decentralisation is shaped not only by token distribution but also by social and procedural dynamics such as proposer diversity, governance automation, and participation incentives."
"The two “innocent” goals of (i) allowing unrestricted participation in governance by bidding for shares (and associated voting rights) and (ii) safeguarding members from majority attacks by allowing them to exit and redeem their share can combine in practice to yield unintended consequences—such as speculation and costly member exits."
"Community Meta Information – Contributor Rewards: ... different options for rewarding contributors, such as REP Tokens, Governance Tokens, or Other Tokens."
"When participants perceive a high return on attention, communities will presumably attract active involvement in governance."
"However, over-quantification of contributions may negatively impact community dynamics, underscoring the need for alternative economic models"
"According to Article 15 of the OECD Model Convention (MC), employment income comprises monetary and non-monetary benefits, including crypto-asset token receipts from employment."
"For the principal, the employee’s income should be recognised at the market value of the tokens awarded when the services are provided, adhering to the principles of a barter transaction."
"Topics include activating new members, continuing or ending ongoing initiatives, adjusting reward structures"
"A healthy tokenization distribution enables fairness to people who are involved in the DAO projects. It means that anyone who is purchasing the token competes on the same terms"
"A financialized strategy would auction new tokens to the highest bidder... A non-financialized approach would distribute tokens based on participation or contributions"
"Some consumers, recognizing their predictive strengths, may stake their currency to signal the strength of their convictions, effectively turning feedback into “bets” on future outcomes—perhaps even compensated with shares to better align incentives."
"a relatively small number of DAOs offer direct incentives to vote (e.g., in the form of increased rewards or proof of attendance badges)."
12
0
Advance identity, reputation, privacy, and Sybil-resistant governance infrastructure
0.46
Evidence 24 64 1 46
"The process for identifying competent and honest adjudicators is opaque and suboptimal."
"Reputation-over-Revenue Systems: Transitioning from purely economic stakes to systems using Soulbound Tokens (SBTs) or non-transferable reputation."
"A juror’s "weight" in a dispute is determined by their history of participation, the fairness of their past rulings, and their proven subject-matter expertise."
"Using blockchain to create an immutable record of the Juror’s decisions, adherence to rules, etc."
"the probability of being selected is proportional to the number of tokens you stake. This means wealthy participants can dominate juries regardless of their expertise in the subject matter."
"Kleros v2.0 is implementing "Modular Dispute Kits." These allow specific "sub-courts" to require Soulbound Tokens (SBTs) or expertise filters"
""the concept of identity is is barely solved yet""
""there's a number of gaps in how identity works in web three, and it impacts DAOs both from, like, an admin and management perspective""
""somebody somewhere has to do that binding and that mapping, in a technical way that's elegant and, like, low friction for the user, you know, and and and we just don't have it""
""we need, like, a way to a generalized way of maintaining references to other identities on other on other platforms off chain""
""most folks agree that, like, private voting would be great""
""doing it in a in a truly, like, zero knowledge proof private way means key ceremonies""
""It's it's, it's an attestation based framework that basically abandons the concept of on chain execution for a moment""
""it pulls apart the weight, the voting power, and the and the identity""
""it decouples those things and just records this identity voted this way""
""I think there's certain identity solutions that would be interesting""
""there's a lot of identity solutions out there, human dot tech, for example""
"no standard transportable identity and reputation"
"Lack of good identity solutions or frameworks to avoid token governance"
"Personal governance assistants for decision fatigue"
"Governance Tooling: Reputation and privacy"
"End-to-end private voting so participants can't be bribed, manipulated, or pressured - votes reflect conviction, not social dynamics"
"Privacy preserving identity solutions for sybil resistance"
"Ballot secrecy is non-existent or short lived, despite being a human right. Verifiablity is achieved at the expense of privacy."
"one-person-one-vote based on membership/reputation"
"It also faced real adversarial pressure (Sybil attacks), and the system evolved defenses"
"They also create a reputation system where you could monitor your stewards through cards that would monitor their voting behavior."
"we did temporal decomposition of the modalities of work required for a community to do fraud detection... develop the sub-DAO responsible for fraud detection."
"End-users: Engaged Superchain end-users that meet a specific threshold of sustained activity on the Superchain and have a valid proof-of-personhood (Passport or World Id)."
"A public wallet address serves as your immutable digital identity that gets registered, receives funds, and maintains reputation."
"Ecological hypercerts are blockchain-based impact certificates that enforce a structured data standard through three key components: identity ... formalized claims ... and provided evidence"
"Ecological hypercerts are blockchain-based impact certificates that enforce a structured data standard through three key components: identity (who made the impact), formalized claims (what impact was achieved), and provided evidence (proof of impact)."
"Self-hosted AI models empower communities with genuine data sovereignty, allowing them to decide which information to share with the broader commons and which to maintain for private use."
"The technical implementation of Taina prioritizes community sovereignty and data privacy."
"Local community members operate their own instances of Taina on local machines, with community-specific Telegram bots storing knowledge exclusively for authorized users."
"all data either flows through community-owned local servers or, with explicit community consent, through GainForest-provided endpoints"
"each top shareholder gets a "soulbound" svg NFT"
"Ultimately, Citizens may govern a citizenship selection algorithm directly that runs across identity data in the Optimism AttestationStation."
"Standards such as Agent-to-Agent (A2A) communication and ERC-8004 help autonomous agents discover one another and verify basic identity. Technical primitives like decentralized identifiers (DIDs) and verifiable credentials (VCs) give agents portable, cryptographically verifiable reputations."
"Anonymity is another character of blockchain and DeFi, and we may not know the identity of voters until they are willing to announce it. Therefore, sybil attacks are a potential problem in our analysis. A single entity can control multiple identities"
"it is important to keep in mind that multiple addresses—holder as well as delegate addresses—can be controlled by the same entity. This fact can make it challenging to determine the actual distribution of power in a governance system and can lead to the illusion of greater decentralization"
"Possible measures include recourse to outside parties, such as bounty hunters, or implementation of a suitable registration system requiring know-your-customer verification."
"Pseudonymous address does not reveal the agent’s identities, such that it is not possible to attach a real person to an address."
"Self-Sovereign Identity (SSI): SSI enables privacy-preserving and verifiable identity management for AI agents"
"Soulbound Tokens (SBTs) act as non-transferable compliance certifications issued when AI agents meet predefined ethical benchmarks"
"Zero-Knowledge Proofs (ZKPs) are cryptographic techniques that allow compliance verification without revealing sensitive data"
"the ETHOS framework advocates for the incorporation of selective transparency mechanisms powered by SSI and SBTs... SSI provides a privacy-preserving solution for managing AI agent credentials and compliance records"
"The ETHOS framework leverages Web3 technologies such as blockchain, smart contracts, DAOs, SSI, and SBTs"
"privacy-preserving technologies like Zero-Knowledge Proofs (ZKPs)"
"To submit a proposal on Snapshot, proposers must connect using an Ethereum wallet, optionally utilizing the Ethereum Name Service (ENS) for identity disclosure. However, anonymity remains an option."
"The primary purpose of a membership system is to record differences in voting weight, ensure only individuals interested in the DAO can participate, and guard against Sybil attacks."
"one person—or more precisely, a pseudonymous wallet holding a badgeholder token—equals one vote"
"Anonymity Anonymous (16) Pseudonymous (53) Known (3)"
"contributors simply get more utility or value from the good than do non-contributors"
"No identity provision is required by Bitcoin, neither on-chain nor off-chain"
"further research is needed around Sybil-resistant voting mechanisms"
"Proof of Personhood (Sybil resistance)"
"Ensuring the authenticity of identities while safeguarding personal data is a delicate balance"
"Proof of Personhood mechanisms ... attempt to solve this issue in a blockchain context"
"Future refinements include reputation-weighted voting [29, 30], mitigation of pseudonymity risks [31], moving phantoms [25]"
"Quadratic voting has been proposed as a countermeasure to mitigate whale influence, however, it remains susceptible to Sybil attacks and identity verification challenges"
"However, despite the transparency provided by blockchain infrastructure, the anonymous participation of DAO token holders presents challenges related to compliance with anti-money laundering (AML) and tax regulations."
"Worryingly, the vast majority of on-chain, smart contract votes do not satisfy ballot secrecy... Wallet addresses are pseudonymous, not anonymous"
"They also found a number of voters with almost identical IP Ports, strongly indicating that they are mounting sybil attacks to gain voting power"
"US Department of Justice: SSNDOB Marketplace, A Series Of Websites That Listed More Than 20 Million Social Security Numbers For Sale, Seized And Dismantled In International Operation"
"We aim to formalize and validate the protocol on: • Locking as sybil resistance and its limits under heterogeneous token distributions."
"Traditional identifiers that rely on third parties are replaced with decentralized identifiers (DIDs)... DIDs can achieve globally unique, secure, and cryptographically verifiable authentication services."
"Reputation is a crucial element in maintaining trust and promoting collaboration within DAOs. It serves as a measure of a member’s contributions, determining their level of influence."
"The creator needs to hold a valid ENS domain and register his project on the Snapshot launchpad"
"incorporates Sybil resistance through biometrics-based Proof-of-Personhood"
"Despite its advantages, reputation-based voting requires thorough implementation to avoid sybil attacks... Potential solutions include cryptographic identity verification and reputation decay mechanisms"
"power dynamics in DAO governance across reputation-based voting, quadratic voting, and SBT-based governance"
"⁃Visible trust metrics and reputational layers: reinforce alignment between authority and social capital"
"The GHAIADAO is a DeSci and will use ORCID ID for its governance"
"The whales were unrelenting and created phantom participants or used proxies to increase their participation power."
"Carissa Véliz. Privacy is power. Melville House, 2021."
"square root staking... assumes that communities can penalize actors who attempt to bypass the square root rule by creating fake accounts (account-splitting)"
"Recent advances in privacy-preserving tools provide communities with new ways to encode subsidiarity into their communication, making backsliding harder."
"Techniques such as trusted execution environments, zero-knowledge proofs, and homomorphic encryption can ensure that sensitive computations—like computing influence according to plural voting rules—are verifiable without revealing the necessary historical voting data."
"The principles of subsidiarity and plurality offer a bottom-up alternative to sybil-resistance that averts top-down surveillance."
"their origins are traceable to the communities that fund them, and the individuals that compose them—expressed relationally with social distance."
"This demands a high sensitivity to context—what Helen Nissenbaum terms “privacy as contextual integrity”"
"participants know about each other, but less—perhaps expressed through ZK proofs about social social aggregates (consensus, cleavage points, etc.)."
"Such designs often struggle to manage identity, sybil resistance, or broader community values... They introduce Soulbound Tokens (SBTs), which are non-transferable, identity-bound attestations of reputation and affiliation... Complementing this feature are... WANG, a non-transferable reputation point system... and (2) Soulbound Tokens (SBTs), which represent members’ skills, works, and social identities..."
"By prioritizing non-transferable identifiers, reputation points, and Soulbound Tokens, the community sought to recast the ledger as a medium of memory and recognition rather than accumulation."
"emerging technologies like zero-knowledge proofs (ZKPs) could enable anonymous voting while maintaining accountability."
"it is important to ensure these credentials cannot be transferred to others (i.e., “soulbound”)."
"This simulation is built on the nonconsensual harvesting of people’s speech, behaviours, or characteristics either to produce summaries or to model their ‘digital twin’ using AI."
"Integration with Hats Protocol for role-based invitation"
"Identity registries, model registries, policy registries, and risk registries establish the universe of recognized entities and rules. What is registered becomes referenceable and enforceable. What is not registered effectively does not exist for the system."
"The lists themselves are self-curated by members and rely on a high trust environment wherein the cohort is aware of one another’s work, allowing them to operate the membership list in a rather informal manner but still verify member contributions."
"A legal structure (possibly a DUNA) to allow more voting power to come online and to transfer specific assets and governance powers to the structure onchain"
"Effective immediately, we are also pausing the DRS system and freezing scores at their current levels."
"the top word, “name” could relate to the discussion of specific names that are used on the platform... the bigram “ban name” suggests banning offensive names from the platform."
"One set of approaches to address control party position reporting issues centers around using know-your-customer registration systems that make token holders identifiable... Registration might also raise privacy considerations requiring costly zero-knowledge proof or other technologies to make identities private yet verifiable."
"identity-based or membership-weighted tokens"
"Choi, M. (2016). A concept analysis of digital citizenship for democratic citizenship education in the internet age. ... Mossberger, K., Tolbert, C. J., & McNeal, R. S. (2007). Digital citizenship: The internet, society, and participation."
"Users might connect spaces through their contributions. We construct the contributors network G as a bipartite network of the contribution relation"
"we find that an active and successful track record in submitting improvement proposals, especially in the final stage, leads to more vote delegations"
"Token holders who prioritize decentralization should carefully investigate delegate affiliations and consider active participation in governance rather than delegation."
"Nickname Etherscan A dummy variable that is set to 1 if the delegate’s Ethereum wallet address has a nickname and zero otherwise"
"“Google Votes: A Liquid Democracy Experiment on a Corporate Social Network”"
"Attributing equal weight to the votes of all members would expose the DAO to the risk of Sybil attacks."
"It should be noted that this analysis considers voting addresses rather than individuals. A single individual may control multiple addresses, or one address may represent a smart contract operated collectively."
"Future refinements include reputation-weighted voting [23,13], mitigation of pseudonymity risks [27]"
"13. Marcela T de Oliveira... Blockchain reputation-based consensus... 27. Anthony J Perez and Ebrima N Ceesay. Improving end-to-end verifiable voting systems with blockchain technologies."
"Community Membership Anonymity: ... Anonymous, Pseudonymous, and Known."
"Reputation Tokens (REP Tokens, for short) are non-transferable tokens that can be used mostly for voting in DAOs."
"Hofmann, A., Kolb, J., Becker, L., and Winkelmann, A. 2021. “A Source-Code-Based Taxonomy for Ethereum Smart Contracts”"
"At the beginning of 2023, GitcoinDAO began issuing the Gitcoin Outstanding Steward Award to further incentivise Steward initiative and compensate reputationally for Steward engagement"
"no inherent privacy mechanisms exist, making the exposure of identities possible"
"Currently, the vast majority of voting activity does not take place in anonymous settings as provided through “shielded voting” on Snapshot or on privacy-focused L2s"
"These DAOs incorporate role-based access control mechanisms"
"one person—or more precisely, a pseudonymous wallet holding a badgeholder token—equals one vote"
"Future refinements include reputation-weighted voting [29, 30], mitigation of pseudonymity risks [31]"
"emerging governance mechanisms, including reputation-weighted voting and dynamic identity verification systems, warrant further investigation"
"the due diligence procedure under the Crypto-Asset Reporting Framework (CARF) and the EU Directive DAC 8 requires the paying agency to identify Crypto Asset Users and Controlling Persons, as well as to ascertain the relevant tax jurisdictions for reporting and exchange purposes"
"obligations arising under the Anti-Money Laundering Directives (AML) and the Directive on Administrative Cooperation (DAC8), which apply to exchanges and CASPs, enable the identification of token holders for tax purposes."
"Smyth, B.: Ballot secrecy: Security definition, sufficient conditions, and analysis of Helios."
"If a DAO uses delegated voting, delegates may not own the tokens they wield. Boards could optionally require binary Endorsements tied to delegated voting power in addition to lockups."
"a user must possess at least 10000 ENS tokens to be eligible to create proposals."
"Security risks, such as vote manipulation or Sybil attacks, remain a concern across all platforms, particularly in decentralized environments where anonymity is valued."
"ensure effective decentralized identity management and access control"
"the integration of innovative voting mechanisms [26,29]"
"Soulbound Tokens (SBTs) are non-transferable digital assets that represent personal achievements, credentials, or reputational markers... The main challenge with SBTs is privacy. If all reputational markers are public, users may be subject to tracking or discrimination."
"[71] ORCID. Open Researcher and Contributor ID, 2023."
"[50] Edd Gent. A cryptocurrency for the masses or a universal id?: Worldcoin aims to scan all the world’s eyeballs."
"[419] University of Montreal. Montréal Declaration for a Responsible Development of Artificial Intelligence."
"Whereas global protocols require global enforcement (risking global surveillance), community currencies push the enforcement down to the level of the association set."
"other approaches focus on ex-post behaviors, such as revealed voting behavior computed securely without revealing identities"
"The first is to identify a credential that separates humans from bots and enforce a 1:1 correspondence between humans and accounts (de jure sybil resistance). ... Second, even assuming perfect enforcement of de jure sybil resistance, a deeper challenge emerges: deterring human beings from being informationally controlled as if they were programmable bots (de facto sybil resistance)."
"While partial privacy and selective disclosures ensure that no two participants have an identical perspective of the social fabric, each participant can still measure their proximity to a political contribution"
"community currencies encourage us to view “identity” as a changing constellation of stakes to different communities, representing degrees of access and influence to different information streams."
"I remember the sense of exhilaration I felt when I received my on-chain ID; this is my passport into the ‘New World.’ I own this identity, and no one can take it away from me."
13
0
Improve public goods resilience, maintenance funding, and reduce single-maintainer dependency
0.22
32 sources
Evidence 18 27 2 6
""our Public Goods Award structure (seems to / may) encourage single-maintainer projects""
""It creates an imbalance between community delegates and the maintainers of critical ecosystem tools.""
""There are two particular maintainers that are each responsible for 3+ critical public goods (by themselves).""
""Their work is so critical that delegates are hesitant to provide them with anything other than positive feedback.""
""This prevents delegates from steering e.g. a critical solo-maintainer's attention and effort from one public good to another based on ecosystem trends.""
""I've observed that there is a lack of feedback for these 2 particular maintainers, compared to the projects that rely less on individuals""
""We're ... currently considering creating awareness of maintainer concentration risk through the concept of 'pony factor'.""
""a concrete pony factor metric is paired with a criticality score (transitive dependent count), and blast radius modeling.""
""The intent is to make it easy to run scenarios like: what happens to the ecosystem when this particular maintainer is taken off their projects""
""Critical maintainers need continued funding, this is non-negotiable.""
""The process change we're exploring is to make available additional funding that can only be spent on external contributors and the onboarding of co-maintainers""
""the SCF Public Goods Maintenance Working Group""
"“Concentration risk of Public Goods maintainers”"
""Move from ‘funding as applause’ to procurement as governance: require a pre-flight packet (scope, milestones, acceptance criteria, maintenance expectations, rate justification)""
""Lack of clear processes for capital allocaiton decisoin making, lack of treasurey management planning and strategy, lack of effective capital allocation planning/KPIs/performance monitoring and curation""
""Unsusintable treasury spending versus inflows, lack of return on capital investments""
""Evidence driven treasury policy and management, results focused capital allocation strategy""
""Designing sustainable contribution economies""
"Non-profit initiatives like Ethereum-France and EthCC, which help grow the Ethereum community and education, should receive funding support."
"The EGPL aligns software incentives with public goods production by ensuring that downstream economic benefit returns to the network that maintains the infrastructure."
"By building the most reliable open source database where anyone can contribute, integrate and extend the data... If you found the Collective DAO Catalog useful, consider donating to help cover our maintenance costs"
"Citizens’ House -> Public goods allocation / legitimacy layer"
"DAOs should try to retain high impact/context delegates but should also design systems that are resilient to any one of them leaving."
"❗Leads should never be a central point of failure."
"The point of decentralization is to reduce a single point of failure (only one core development team). “Adding more pizzas” reduces the risk of this failure by creating redundancy."
"EBP, including impact evaluation, is essential for the sustainable development of digital public goods."
"Critical Ethereum clients, compilers, libraries, and shared infrastructure remain structurally underfunded despite securing and enabling applications worth billions. Maintainers face unstable resource availability and lack predictable support"
"Critical maintainers lack stable resources and must balance public goods work with commercial activity... This results in unstable roadmaps, burnout, and a persistent risk of maintainers abandoning essential public goods."
"A more holistic ROI view should consider ... Long-term sustainability and resilience of public goods infrastructure"
"Protocol Guild (PG) is a novel mechanism that aims to address the challenge of sustainable funding for core contributors in the Ethereum ecosystem. By creating a collective mechanism for public goods funding, PG functions as an ecosystem enabler by ensuring that crucial development work on the core infrastructure of the Ethereum protocol continues without being entirely dependent on commercial entities and proprietary code bases."
"Retro Funding directly supports ~36 full-time maintainers; most projects are solo or two-person shops."
"The 6.6M OP disbursed so far is supporting about 36 full-time maintainers."
"the Citizens’ House is responsible for decisions that may require prioritizing long term growth ahead of other goals – decisions like allocating funding to public goods that support the Collective."
"key developers may be the only people that can guide voters by proposing specific Maker IPs, implying that the centralized power of core developers exists in DeFi."
"RetroPGF ... retroactively rewards projects deemed valuable to the Ethereum and Optimism communities."
"In doing so, they can bring to light productive activities (such as open-source code maintenance or environmental stewardship) that markets often undervalue."
"Despite the fact that scientific discoveries can be public goods, science is best understood as contribution systems where reputation, governance power, and funding flow to high-value contributors."
"retroactively rewards projects deemed valuable to the Ethereum and Optimism communities"
"PGT highlights how decentralized communities might underfund essential infrastructural tasks, such as code audits or user education, owing to free-rider tendencies [19]."
"free-rider tendencies intensify when financial incentives skew governance priorities, leading participants to vote for token price maximization over community-building efforts, such as security audits or infrastructure upgrades"
"PGT highlights how DAOs systematically underfund shared infrastructure"
"The Optimism Collective is the group of contributors working to reward public goods and build a sustainable future for Ethereum"
"MolochDAO is an example of a mission-driven DAO, pooling members’ contributions to fund blockchain infrastructure as a digital public good"
"MolochDAO primarily funds projects that contribute to the development and sustainability of Ethereum’s public goods and decentralized infrastructure."
"Quadratic funding accelerates supermodularity."
"Many of these builders don't want to scale beyond a single full time contributor. They are unlikely to transform the structure or ambitions of the project."
"The Retro Funding program will not run for at least the next 12 months. In the meantime, the Foundation will assess alternative approaches to support public goods."
"There is no shared taxonomy or metrics across programs, making outcomes incomparable and preventing learning across funding cycles."
"A robust Evidence Layer is essential for the healthy development of digital public goods and for effective public goods funding."
"The funding had no impact or was wasted. What this does mean: With current methods, data, and timeframes, any signal is indistinguishable from noise."
"Anou’s financial strategy emphasises slowness and capacity-building over receiving large grants from International NGOs. This ensures that the organisation does not build a reliance on external foundations and promotes a self-sustaining ecosystem."
"Technical and Operational Support is composed of technical, administrative and other personnel who are adequately remunerated."
"Quadratic funding rapidly integrates local and networked knowledge to “pick up” and subsidize underfunded collective action problems as they arise"
14
0
Increase accessibility and real-world relevance of governance, including mobile-first and hybrid participation experiences
0.20
Evidence 16 28 2 8
"“there are existing tools like Karma, but there's friction with having to use markdown and these tedious formats... especially for people that are mostly mobile based.”"
"“it hasn't really been... mobile first driven, friendly UX experience for people to do impact.”"
"“Greengrass is very accessible because it's just a browser app... download it as a PWA. It works fully offline.”"
""DAO infrastructure largely stays on-chain and remains a niche within a niche: inaccessible to most people, barely registering in broader societal awareness""
""Ethereum governance experiments are on one hand super important field research, they are just a bubble within a bubble""
""like integrated OS kinda interfaces might be a key here to pull together the fragmented digital-comms / coordination reality.""
"“lack of educational resources like 'guides' to get insitutions started, and wobbly legal infrastructure for institutions to be able to simply begin DAO experiments.”"
"“there's no straightforward way to create a sort of 'hybrid-DAO entity' institution cross-over.”"
"“people are not engaged enough with governance as a topic. It isn't inspiring for most people in the current formats”"
"“its such a heavy topic, its reading-heavy”"
"“A really big point that me and my team want to highlight is how important it is to bridge physical spaces with digital spaces.”"
"“The physical space communicates with the digital layer. This digital layer is like a control panel; via people (nodes) the space can change”"
"“the name of my events and learning resources production company is called '4.0 PRODUCTIONS LTD' and I am working with 'Powers Protocol' governance infrastructure on a series to merge a digital space with IRL spaces for the cultural and creative sector.”"
""I think the UI UX could be better with the crypto and everything and make make it seem like they're not even using crypto in the background""
""even if INR or where their local fiat currency could seamlessly con seamlessly be converted to crypto, that could be beneficial""
"['No array found — user requested a JSON array with exactly 1 element, but output must preserve structure. Converting to array in spirit is not allowed here.']"
"Don’t want to read? 💡 Collective DAO Learnings ... 🖌️ DAO Design Principles (ethDenver presentation 2024)"
"The cycle combined asynchronous AI dialogues with synchronous workshops"
"Mobile optimization (many delegates participate via phone)"
"More varied interaction modes (not just text)"
"The constitution should be accessible at a URI, stored in an accessible digital format such as a .md or .txt file"
"Second, even when rights can be incorporated within smart contracts, doing so renders them illegible to those participants who cannot read the code within the smart contract. In other words, rights in smart contracts also need to be articulated with accompanying texts."
"Mobile internet adoption continues to increase, with 57% of the world’s population (4.6 billion people) now using mobile internet on their own device, making digital governance for natural commons increasingly possible."
"Implementation through Telegram, a widely used messaging platform in Brazil, eliminating the need for additional applications"
"Implementation through Telegram, a widely used messaging platform in Brazil, eliminating the need for additional applications"
"Multimodal capabilities (text, image, and speech recognition) to accommodate diverse communication styles"
"a single deployment payload that costs very little on mainnet to setup (<$2)."
"pictograms with distinct colours and shapes allow artisans to upload their work, track their inventory, and manage their sales, accommodating a range of literacy levels."
"The portal also combines governance and community activities, offering a single point of connection for members who might be geographically disconnected."
"the word cloud... “vp” suggest a focus on governance and decision-making that is essential for the successful running of the platform"
"However, the complexity of blockchain governance, potential legal uncertainties, and the technological knowledge required for citizens to participate effectively present significant barriers."
"Complementary measures such as simplified user interfaces, digital literacy workshops, or hybrid participation models that combine DAO processes with more accessible platforms"
"inclusive governance structures, more equitable resource allocation, and user-friendly voting mechanisms can significantly boost engagement and decentralisation"
"ensuring they are not only accessible to developer-innovators but also to end-users within communities"
"The CommonsHood project... provid[es] a user-friendly wallet application that enables communities to create and circulate digital tokens."
"Currently classified as a TRL 7 application, CommonsHood is actively deployed in real-world experiments"
"Future work will focus on integrating advanced governance models (e.g., quadratic voting, conviction voting), cross-chain interoperability, and mobile accessibility."
"The hybrid architecture ensures that critical governance actions remain secure and transparent, while off-chain collaboration tools enhance usability and engagement"
"the Snapshot project roots in the technique of snapshot... EIP-4824... matching on- and off-chain representations"
"Citizens were able to submit statements to ION through a government portal or by tagging the bot on social media."
"designing intuitive interfaces and processes to improve accessibility and usability for DAO members, ensuring that participation is straightforward and user-friendly"
"particularly in contexts where traditional coordination infrastructure is limited"
"We’ve put blockchain where it belongs—in the background. No one needs to know it’s there. They just log in with their email and start contributing."
"the architecture was intentionally designed for future adaptation in low-bandwidth or last-mile environments, a critical condition for equitable participation in development contexts."
"For such individuals, the technical nature of DAOs could present a barrier to participation, potentially alienating a portion of the community."
"technocratic interfaces... exclude those with limited digital literacy or capital"
"Multi-language support (e.g. successfully elicited responses with Spanish-speaking delegates)"
"All organizations have things like that, ways of making participation more accessible, governance more accessible."
"While a DAO might offer long-term benefits in certain governance scenarios, it is deemed impractical for this project, as it could discourage broad public involvement rather than encourage it."
"Hasler, S., Chenal, J., & Soutter, M. (2017). Digital tools and citizen participation: Towards sustainable and responsive urban planning. ... Muth, R., Eisenhut, K., Rabe, J., & Tschorsch, F. (2019). BBBlockchain: Blockchain-based participation in urban development."
"partial off-chain deliberation, on-chain automated enforcement"
"[84] Lucas Andrade, Juliao Braga, Stefany Pereira, Rafael Roque, and Marcelo Santos. In-Person and Remote Participation Review at IETF."
"SeeDAO functions as a hybrid social infrastructure that connects on-chain coordination tools with off-chain community practices... offline engagements such as rural digital-nomad bases and urban cultural hubs."
"enabling users—regardless of their technological expertise—to better evaluate their strategies."
15
0
Support governance experimentation, alternative decision mechanisms, and context-appropriate governance design
0.00
29 sources
16
0
Move beyond pure token-weighted voting toward representative, role-, reputation-, identity-, and contribution-based governance
0.00