Decentralized Autonomous Organizations (DAOs) with Blockchain: is it time for Ubiquitous?
Mia Ika Rahmawati (a*), Anang Subardjo (b)

a), b) Sekolah Tinggi Ilmu Ekonomi Indonesia (STIESIA) Surabaya
Jalan Menur Pumpungan No. 30 Surabaya, 60118, Indonesia
* miaikarahmawati[at]stiesia.ac.id

Abstract

A new paradigm for developing decentralized systems independent of a central authority has emerged due to the development of blockchain technology. However, blockchain applications extend beyond banking, a recent example of the decentralized government. Decentralized Autonomous Organizations (DAOs) enabled by blockchain technology have arisen as a new type of collective governance, allowing communities to self-organize via decentralized technology. While agency fees have always been a challenge for any business, it is expected that blockchain-based DAOs could provide a solution. This study seeks to explore and discuss the possibilities of DAOs blockchain-based corporate governance ecosystem reformation. This study utilizes a qualitative methodology for its research approach. This study concludes that blockchain technology offers a novel method for minimizing agency expenses incurred due to contracting with agents within an organization. In addition, this study suggests that DAOs aim to avoid agency fees by employing smart contracts encoded in the blockchain.

Keywords: Decentralized Autonomous Organizations- DAOs- Blockchain- Corporate Governance- Agency Costs

Topic: Accounting