Management of Decentralized Autonomous Organizations

In this paper, we analyze the current management status of decentralized autonomous organizations (DAO) and propose a protocol for managing a DAO. For the management of this form of organization, decentralization and autonomy are particularly critical. This basic premise avoids the potential abuse of power by centralized authority because such a firm is governed by code. In centralized firms, company members have a stronger right to participate in decisions made by high-ranking administrators. Blockchain technology, which provides a decentralized form of indestructible data storage, has gained much attention in recent years. Smart contracts, executable code stored in a blockchain, are based on this concept. We propose an approach to building DAO using smart contracts based on blockchain technology, which provides the optimum conditions for the decentralization and autonomy of DAO. The results show that our proposal outperforms existing solutions in terms of team autonomy within the DAO, the ability of all company members to vote on proposals, and the members elected by the rest of the company for higher positions within the organization. The key benefit of our solution is the universal concept of DAO as a service for any firm with a team-based management approach. This platform may be used by many businesses and also provides extensive access rights control based on predefined rules.