The On-Chain and Off-Chain Mechanisms of DAO-to-DAO Voting

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Voting is the primary mechanism through which DAOs, or Decentralised Autonomous Organisations, reach decisions. Although transparent, the voting process can be complex: it can involve many interacting smart contracts. The nexus of the decision-making process can be relocated and the true voter demographic obfuscated. Furthermore, DAOs can govern other DAOs - metagovernance. We present a method for identifying DAO-to-DAO metagovernance on the Ethereum blockchain. We focus on the links between DAOs and token contracts. We employ a signature-matching algorithm to flexibly handle a variety of DAO frameworks and voting schemes. Once we establish token-to-DAO relationships, we gather and process voting data to produce a list of metagovernance relationships. We apply this algorithm to an initial set of sixteen DAOs and we extend the dataset as more DAOs are identified. We produce a metagovernance network with 61 DAOs and 72 metagovernance relationships. We examine three case studies that show metagovernance of various forms: strategic, decisive, and centralised where a DAO becomes a nexus for metagovernance. We demonstrate that metagovernance obscures voting context and introduces entities driven by self-interest that can significantly influence governance. We highlight instances of metagovernance between DAOs operating on the Ethereum blockchain where current governance tools inadequately reveal such dynamics. To preserve the transparency-centric ethos of DAOs and mitigate risks associated with metagovernance, there is a pressing need for enhanced tools to address such issues.

Original languageEnglish
Title of host publicationProceedings - 2024 IEEE International Conference on Blockchain, Blockchain 2024
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages649-655
Number of pages7
ISBN (Electronic)9798350351590
DOIs
Publication statusPublished - 19 Aug 2024
Event7th IEEE International Conference on Blockchain, Blockchain 2024 - Copenhagen, Denmark
Duration: 19 Aug 202422 Aug 2024

Publication series

Name2024 IEEE International Conference on Blockchain (Blockchain)

Conference

Conference7th IEEE International Conference on Blockchain, Blockchain 2024
Country/TerritoryDenmark
CityCopenhagen
Period19/08/202422/08/2024

Keywords

  • blockchain
  • DAO
  • delegation
  • metagovernance
  • smart contracts
  • voting

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