Governance of Decentralized Autonomous Organizations

Journal of Modern Accounting and Auditing, Vol. 15, No. 8, 406-411, 2019

5 Pages Posted: 31 Mar 2020

See all articles by Galia Kondova

Galia Kondova

School of Business FHNW

Renato Barba

affiliation not provided to SSRN

Date Written: 2019

Abstract

This paper draws parallels between the OECD principle on disclosure and transparency and the decentralized autonomous organization (DAO) governance on a blockchain. It provides an overview of the DAO concept based on self-executing smart contracts on a blockchain. The blockchain keeps a record of data and transactions in a decentralized and immutable form. The self-executing smart contracts on a blockchain ensure transparency and automation of the decision-making process in a DAO. The paper concludes that a DAO governance structure provides for transparency and enables shareholders to exercise their rights in an informed way. Considering the early stage of development of DAOs, however, caution is needed especially with regards to potential protocol vulnerabilities and legal uncertainties.

Keywords: DAOs, blockchain, corporate governance, smart contracts

JEL Classification: O54, P48

Suggested Citation

Kondova, Galia and Barba, Renato, Governance of Decentralized Autonomous Organizations (2019). Journal of Modern Accounting and Auditing, Vol. 15, No. 8, 406-411, 2019, Available at SSRN: https://ssrn.com/abstract=3549469

Galia Kondova (Contact Author)

School of Business FHNW ( email )

Peter Merian-Strasse 86
Basel, 4002
Switzerland

Renato Barba

affiliation not provided to SSRN

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