Built to last, not to scale: The long run of decentralised autonomous organisations

【Author】 Sheikh, Saqib; Sifat, Imtiaz

【Source】JOURNAL OF INNOVATION & KNOWLEDGE

【影响因子】11.219

【Abstract】The FTX scandal and crypto boom-and-bust cycles have called into question the sustainability of decentralised systems like DAOs. This article argues that inherent constraints will limit DAOs' mainstream adoption. We contend that the primacy of code in DAOs-represented by the code is law maxim-is overstated given semantic gaps in contracts. Crisis management is another serious bottleneck due to challenges of coordinating decisions without central authorities. Informal hierarchies may also emerge-in line with organisational theoretic concept of power clawing back, which would undermine decentralization objectives. Our analysis considers anonymous reputation verification, flexibility, and transparency to have more staying power and identifies scalability as the primary obstacle-stemming from high transaction costs and throughput constraints. (c) 2024 The Author(s). Published by Elsevier Espa & ntilde;a, S.L.U. on behalf of Journal of Innovation & Knowledge. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/)

【Keywords】Decentralised finance; Blockchain technology; Financial intermediation; System risk; DAO; Decentralised autonomous organisation

【发表时间】2024 JUL-SEP

【收录时间】2024-08-10

【文献类型】观点阐述

【主题类别】

区块链治理-市场治理-DAO