Event

The governance of decentralized autonomous Organizations: A Study of Contributors’ Influence, Networks, and Shifts in Voting Power

29 May 2024
3:00 pm - 4:00 pm

Location

Room 255

Organizer

Complexity Science Hub
Email
events@csh.ac.at

Event

The governance of decentralized autonomous Organizations: A Study of Contributors’ Influence, Networks, and Shifts in Voting Power

We present a study analyzing the voting behavior of contributors, or vested users, in Decentralized Autonomous Organizations (DAOs). 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 on at least one proposal in 20.41% of DAOs. Notably, contributors tend to be centrally positioned within the DAO governance ecosystem, suggesting the presence of inner power circles. Additionally, we observed a tendency for shifts in governance token ownership shortly before governance polls took place in 1202 (14.81%) of 8116 evaluated proposals. Our findings highlight the central role of contributors across a spectrum of DAOs, including Decentralized Finance protocols. Our research also offers important empirical insights pertinent to ongoing regulatory activities aimed at increasing transparency in DAO governance frameworks.

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