ISSN 2348-1196 (print) International Journal of Computer Science and Information Technology Research ISSN 2348-120X (online) Vol. 10, Issue 1, pp: (30-34), Month: January - March 2022, Available at: www.researchpublish.com
Mapping out the DAO Ecosystem and Assessing DAO Autonomy 1
Vilma Mattila, 2Prateek Dwivedi, 3Pratik Gauri, 4Md Ahbab 5ire (Sustainable Distributed Computing) 160 City Rd, London, United Kingdom Email of Corresponding Author: ahbab@5ire.org
Abstract: With continuously changing operational and business needs of the organizations, Decentralized Autonomous Organizations (DAO) is the current need of the organizations. Centralized Autonomous Organization (CAO) lack transparency and are managed by few efficient managers whereas Decentralized autonomous Organization's (DAO) is novel scalable, self-organizing coordination on the blockchain, controlled by smart contracts and its essential operations are automated agreeing to rules and principles assigned in code without human involvement. Starting an organization with someone that involves funding and money requires a lot of trust in the people in working with. But it’s hard to trust someone that have only ever interacted with on the internet. With DAOs there’s no need to trust anyone else in the group, just the DAO’s code, which is 100% transparent and verifiable by anyone. This opens up so many new opportunities for global collaboration and coordination. This article develops a proposed measure of autonomy for DAOs. Keywords: decentralized autonomous organization, decision making, liability.
1. INTRODUCTION Decentralized autonomous organizations (DAOs) have emerged as an interesting new category of software application. Initial applications are disrupting the finance industry, but the technology is not restricted to fintech applications or assets. While other devices or software applications also claim to be autonomous, in many cases there have been levels proposed to scale or categorize the degree of autonomy afforded those applications. This notion of a level of autonomy is particularly important for consumer awareness as these autonomous devices and applications scale out to mass-market services. The societal impact from the operationalization of these technologies can be significant in terms of safety, security, privacy, and the consequences of failures. DAOs have been proposed in broader fields of human endeavor: reimagining work (Lustig, 2019) and the arts (Catlow, 2019); automating enforcement of ethical policies in business processes (Sulkowski, 2019); and restructuring the basis of governance and democracy in human societies (Merkle, 2016; Garrod, 2016). While these applications are claimed (from their name) to be autonomous; human action is still required to evolve these applications.
2. BRIEF REVIEW OF DAOS Blockchain-based “Decentralized Autonomous Organizations” (DAOs) are the logical extension of the Cypherpunk ideal of cyber and physical autonomy. Scholars define a DAO as “a blockchain-based system that enables people to coordinate and govern themselves mediated by a set of self-executing rules deployed on a public blockchain, and whose governance is decentralized (i.e., independent from central control)” (Hassan & De Filippi, 2021). In these software encoded institutions, “autonomous” refers to individual and collective selfgovernance as independence from external force and the control of others, human involvement, and self-direction through intelligent machines that can make decisions and participate in labour in the organization. The phrase “Decentralized Autonomous Organization” was first mentioned in the field of cybernetics, despite Vitalik Buterin, co-founder of the Ethereum smart contract enabled blockchain protocol, having claimed to invent it (Duran at al.,
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