The Governance of Decentralized Autonomous Organizations: A Study of Contributors' Influence, Networks, and Shifts in Voting Power

• URL: http://arxiv.org/abs/2309.14232v2
• Date: Thu, 28 Sep 2023 10:29:10 GMT
• Title: The Governance of Decentralized Autonomous Organizations: A Study of Contributors' Influence, Networks, and Shifts in Voting Power
• Authors: Stefan Kitzler, Stefano Balietti, Pietro Saggese, Bernhard Haslhofer, Markus Strohmaier,
• Abstract summary: 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 contributors, on average, held the necessary majority to control governance decisions. Our findings highlight the central role of contributors across a spectrum of protocols, including Decentralized Finances.
• Score: 1.8728696177171968
• License: http://creativecommons.org/licenses/by/4.0/
• Abstract: 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 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 take 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 to DAO governance frameworks.

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