Multiparty Democracy in Decentralized Autonomous Organization (DAO): Evidence from MakerDAO

Sun, Xiaotong; Chen, Xi; Stasinakis, Charalampos; Sermpinis, Georgios

doi:10.2139/ssrn.4253868

Cited by 6 publications

(9 citation statements)

References 61 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…These findings emerge, for example, from observations of The MakerDAO, Compound, and others (Sun, 2021;Fritsch et al, 2022). The patterns include, for example, representative proxy decision-making, coalition building, and differing levels of vote power (Zhao et al, 2022;Sun et al, 2022). Thus, we increasingly see the need for trust in actual cases.…”

Section: Discussionmentioning

confidence: 97%

See 1 more Smart Citation

Decentralized Autonomous Organizations and Trust: Approach to Trust in DAO in the Context of Existing Trust Theory

Šimůnek¹

2023

Proceedings of the International Scientific Conference Hradec Economic Days 2023

View full text Add to dashboard Cite

We are witnessing how numerous trends, including decentralization and the growing role of technology, permeate the way companies are organized, intersecting with the phenomenon of Decentralized Autonomous Organizations (DAO). This technologybased organization carries a pattern known as a zero-trust policy, aiming to eliminate the need for trust in an organization. It appears to oppose the existing research on trust in management and its usefulness to organizations. That brings the question of whether DAOs represent a change from a trend defined by a standard trust theory. This conceptual paper answers by looking at the Decentralized Autonomous Organizations phenomenon through the existing knowledge on trust, specifically through Dirks & Ferrin's trust theory, and compares the concept with the traditional organization. The investigation suggests that DAOs only partially eliminate or transform the need for trust compared to traditional organizations;the need for trust is still present and may even grow in future concept development.

show abstract

Section: Discussionmentioning

confidence: 97%

“…Thus, we increasingly see the need for trust in actual cases. Gradually, the transferability of traditional mechanisms does not only apply to trust but also, for example, to corporate governance, and others are becoming apparent (Sun et al, 2022).…”

Section: Discussionmentioning

confidence: 99%

Decentralized Autonomous Organizations and Trust: Approach to Trust in DAO in the Context of Existing Trust Theory

Šimůnek¹

2023

Proceedings of the International Scientific Conference Hradec Economic Days 2023

View full text Add to dashboard Cite

show abstract

“…Sun et al [51] analyzed MakerDAO's voting from August 5, 2019, to October 22, 2021. Their empirical analysis introduced three measurements for centralized governance: voting participation, centralized voting power via the Gini coefficient, and the largest voter's 'voting power.'…”

Section: Quantitative and Empirical Dao Researchmentioning

confidence: 99%

“…Two further studies on MakerDAO reveal its importance to the decentralized governance of digital assets. Sun, Stasinakis, and Sermpinis [50] conducted a detailed investigation into voter coalitions within MakerDAO, utilizing a k -means clustering algorithm on 809 governance proposals, uncovering the impact of voter coalitions on protocol stability and growth. Zhao et al [60] bring an Organizational Management perspective to task management in MakerDAO, with a binary variable analysis of strategic versus operational voting among 378 proposals.…”

Section: Quantitative and Empirical Dao Researchmentioning

confidence: 99%

A Progressive Web3: From Social Coproduction to Digital Polycentric Governance

DuPont

2023

SSRN Journal

View full text Add to dashboard Cite

“…Specifically, 80% of DAOs have high voting concentration held by delegates representing a single token 10 holder. 54 Furthermore, blockchain networks that utilize PoW consensus mechanisms may give rise to the formation of 'blockchain conglomerates'. These companies offer various blockchain-related services and products, such as high-performance computing equipment, and participate in mining pools to increase their influence on protocol proposals.…”

Section: A Decentralization Fallacy?mentioning

confidence: 99%