Can DAOs Innovate Governance beyond Hierarchies?

Abstract

Decentralised autonomous organisations (DAOs) represent a novel organisational form made possible by blockchain technology. This article summarises a research project that sets out to establish an intellectually coherent, consistent, and academically robust theoretical framework that locates DAOs within a theory of organisation. I examine the unique characteristics of DAOs, focusing on their ability to facilitate coordination and cooperation without traditional hierarchical structures. By leveraging market-like mechanisms and token-based governance, DAOs aim to reduce agency costs and promote inclusive decision-making. The efficacy of these mechanisms, however, in achieving effective governance remains an empirical question. This research provides a theoretical framework to understand DAOs within the context of organisational theory, offering insights for researchers, practitioners, and policymakers on the potential and challenges of this emerging form of organisation.