Decentralized Governance in DAOs: A Study of Decision-Making and Access Management Processes

Abstract

This paper explores governance related processes within decentralized autonomous organizations. Firstly, the concepts of blockchain and tokenization are explored to set the basis for further study. Decentralized autonomous organizations are then introduced, definition, key principles are introduced. The underlying technologies, such as smart contracts, tokenization, and layered architecture are explored. Furthermore, the voting process in decentralized environment is described with different types of consensus mechanisms defined. After setting up the environment for development of a local instance of a DAO, it is shown how smart contracts, deployment and executing scripts are created. The results of the set up voting process are provided, the opportunities and challenges related to decentralized governance are explored.