How Decentralized Autonomous Organizations Optimize Charitable Giving

33 Pages Posted: 15 Dec 2021

See all articles by Wulf A. Kaal

Wulf A. Kaal

University of St. Thomas, Minnesota - School of Law

Date Written: December 8, 2021

Abstract

Charitable giving in legacy systems is subject to several major downsides that can be addressed with decentralized autonomous organizations (DAOs). Centralized legacy charitable organizations often lack foundational transparency and are subject to significant power imbalances that favor the donor and lead to centralization of the charity. Existing legal incentives often lead to so-called Zombie Charities in many jurisdictions. The donative intent can therefore often not be optimally fulfilled. DAOs combine unique feedback loops and transparency features with community governance that address the existing shortcomings of charitable organizations in decentralized structures.

Keywords: Common Good, Charity, Decentralized Autonomous Organization, Finance, Token Models, Cryptocurrencies, Feedback Effects, Emerging Technology, Tokens, Blockchain, Distributed Ledger Technology

JEL Classification: K20, K23, K32, L43, L5, O31, O32

Suggested Citation

Kaal, Wulf A., How Decentralized Autonomous Organizations Optimize Charitable Giving (December 8, 2021). U of St. Thomas (Minnesota) Legal Studies Research Paper No. 22-16, Available at SSRN: https://ssrn.com/abstract=3981021 or http://dx.doi.org/10.2139/ssrn.3981021

Wulf A. Kaal (Contact Author)

University of St. Thomas, Minnesota - School of Law ( email )

MSL 400, 1000 La Salle Avenue
Minneapolis, MN Minnesota 55403-2005
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
126
Abstract Views
441
rank
301,461
PlumX Metrics