The rise of decentralized autonomous organizations (DAOs): a first empirical glimpse. Issue 2 (3rd April 2023)

• Record Type: Journal Article
• Authors: Bellavitis, Cristiano; Fisch, Christian; Momtaz, Paul P.
• Is Part Of: Venture capital. Volume 25:Issue 2(2023)
• Page Start: 187
• Page End: 203
• Publication Date: 2023-04-03
• Subjects: DAO -- decentralized autonomous organization -- blockchain -- ethereum; Venture capital -- Periodicals; Entrepreneurship -- Periodicals; 332.041
• DOI: 10.1080/13691066.2022.2116797
• Languages: English
• ISSNs: 1369-1066

Abstract

ABSTRACT: Blockchain technology and smart contracts are catalysts for decentralization and disintermediation. These new technologies reduce transaction costs, agency costs, and offer a basis for trustless social and economic interactions. They are fueling new business models for decentralized platforms and have revolutionized crowdfunding. A recent trend, Decentralized Autonomous Organizations (DAOs), stands to fundamentally transform organizing and governance. DAOs are blockchain-native, decentralized organizations that are collectively owned and managed by their members via smart contracts. In this note, we assess the promises and challenges of DAOs, with a focus on decentralized governance and disintermediation, and offer a first empirical glimpse at the rise and functioning of DAOs. Overall, DAOs may introduce a new era in organizational economics, transforming the global corporate landscape from hierarchical organizations to democratic and distributed organizations powered by organizational entrepreneurship and innovations.