Decentralised Autonomous Organisations: Governance, Dispute Resolution and Regulation

This thesis critically evaluates the governance, resolution of disputes and regulation decentralised autonomous organisations (DAOs) through lens institutional cryptoeconomics (IC). DAOs, which use smart contracts, therefore blockchain, are a new type organisation, can take many forms, including for-profit not-for-profit. The primary data used in scholarly grey literature triangulated with semi-structured interviews from founders consultants for people carrying out work DAOs regulators. Governance is vital to DAOs. Given cannot act outside their rules because contracts may contain errors or unforeseen events occur, rule changes necessary if remain operational. Nor unless they expressly authorised do so by contracts. Proposals actions, such as agreeing be done DAO, proposed voted upon DAO token holders. A key finding complex governance arrangements overcome challenges any holder make proposals DAO. Those include lack strategic oversight vetting proposals. Voting on also varies amongst While some traditional one token–one voting scheme, others wary concentrating power range novel schemes, reputation-based systems conviction voting. Despite dispute remains necessary. Traditional institutions not fit purpose most arising within dealing Instead services emerging online third-party (DDRSs). These DDRSs employ various innovative mechanisms, allowing anyone appeal decision, merely parties themselves. In cases where have agreed using DRRS, finds that DRRSs’ rulings should subject judicial time cost involved court proceedings need finality decisions. DAOs pose legal regulation: default laws partnership unincorporated associations an ill fit. examines wrappers It explores attempts incorporate into existing frameworks amendments legislation creation sui generis legislation. United States’ limited liability company structures (LLCs) best registered nonprofit not-for-profit DAOs. This contributes evaluating three interlinked themes IC: models, provides greater insight nascent organisational form recommendations reform.