Reputation-based Decentralized Autonomous Organization for the non-profit sector: Leveraging blockchain to enhance good governance

The Decentralized Autonomous Organization (DAO), a group organized by governance rules programmed on blockchain, has recently been attracting attention as novel organizational form. effectiveness of DAO’s decentralized mechanism and transparency, secured its code, generally discussed in contrast with traditional stock companies. However, the potential DAO for non-profits, which provide goods services that profit-seeking organizations do not offer, less discussed. This paper presents proof-of-concept implementation to demonstrate advantages utilizing framework non-profits. To this end, study developed incorporating reputation-based decision-making system, peer evaluation transparent, real-time accounting system Ethereum blockchain. Most current systems rely heavily token-based voting using tokens stock-like features. there is need beyond have owners. Therefore, application applies an existing integrates additional features, such membership mutual reputation NFT visualize contributions. Several exemplar demonstrations were conducted evaluate key functionalities. enabled discussions across boundary between technology society terms aspects non-profits: i) transparency finance governance, ii) participatory diverse stakeholders, iii) equity inclusiveness consensus mechanism. results indicated blockchain compensates non-profit’s vulnerabilities, illustrated proposed mechanisms are well-motivated. also revealed blockchain-based involves many risks limitations it brings benefits. Lastly, providing several possible solutions these constraints well recommendations future research, contributes sustainable development non-profits one foundations democratic governance.