Exploring governance frameworks and decision processes in ‎blockchain-based decentralized autonomous organizations

Authors

  • Rajendra Patil Department of Computer Engineering, SSVPS Bapusaheb Shivajirao Deore College of Engineering, Dhule (MS), India
  • Suman Kumar Swarnkar Dept of Computer Science and Engineering, Shri Shankaracharya Institute of Professional Management and Technology Raipur, India https://orcid.org/0000-0002-8116-0684
  • Deepak Yashwantrao Bhadane R. C. Patel College of Engineering and Polytechnic, Shirpur, Dhule (M. S.)، India https://orcid.org/0009-0002-8487-4313
  • Govind Mohanlal Poddar NES Gangamai Collage of Engineering, Nagaon, Dhule (MS)، India https://orcid.org/0009-0007-7185-0001
  • Manesh Prakashrao Patil Department of Computer Engineering, SSVPS Bapusaheb Shivajirao Deore College of Engineering, Dhule (MS)، India https://orcid.org/0009-0001-2298-5731
  • Ritesh C. Sonawane Mastek India (Pvt.) Limited

How to Cite

Patil, R., Swarnkar, S. K. ., Bhadane, D. Y. ., Poddar, G. M. ., Patil, M. P. ., & Sonawane, R. C. . (2025). Exploring governance frameworks and decision processes in ‎blockchain-based decentralized autonomous organizations. International Journal of Basic and Applied Sciences, 14(1), 166-180. https://doi.org/10.14419/h0y6dw98

Received date: April 2, 2025

Accepted date: May 1, 2025

Published date: May 5, 2025

DOI:

https://doi.org/10.14419/h0y6dw98

Keywords:

DAO; Blockchain; Smart Contracts; On-Chain Governance; Off-Chain Governance; Quadratic Voting; Reputation Based Systems

Abstract

Decentralized Autonomous Organizations (DAOs), which employ smart contracts and blockchain technology to facilitate decentral-ized, ‎democratic, and transparent decision-making, are an innovative change in organizational governance. This study examines the basic architecture of DAOs in the larger blockchain ecosystem, emphasizing how smart contracts help automate governance proce-dures. On-chain and ‎off-chain governance models are the main topics of this thorough analysis of DAO governance systems. Off-chain governance refers to the ‎decision-making process that happens outside the blockchain to increase flexibility and efficiency. In contrast, on-chain governance uses ‎blockchain-based voting to guarantee transparency and immutability. A comparison of these models assesses their benefits, drawbacks, and ‎compromises, especially regarding decentralization, security, and decision-making efficiency. There is also discussion of developments in DAO ‎governance, such as cross-chain interoperability, hybrid models, and AI-assisted decision-making. The results highlight the necessity of a ‎well-rounded governance strategy that incorporates both off-chain flexibility and on-chain security. By providing insights on optimizing ‎decision-making frameworks for decentralized organiza-tions, this research adds to the continuing discussion on DAO governance‎.

References

  1. Augustin, N., Eckhardt, A., Jong, A. W (2023). Understanding decentralized autonomous organizations from the inside. Electronic Markets, 33(1), 1-14. https://doi.org/10.1007/s12525-023-00659-y.
  2. Wegner, D., Zuquetto, R. D., Grisi, F. C. (2024). Decentralized Autonomous Organizations (DAOs): Field of Research and Avenues for Future Studies. Brazilian Administration Review, 21(2), pp, 1-13. https://doi.org/10.1590/1807-7692bar2024230183.
  3. L. Liu, S. Zhou, H. Huang and Z. Zheng (2021). From Technology to Society: An Overview of Blockchain-Based DAO. in IEEE Open Journal of the Computer Society, vol. 2, pp. 204-215. https://doi.org/10.1109/OJCS.2021.3072661.
  4. Taherdoost H. (2023). Smart Contracts in Blockchain Technology: A Critical Review. Information. 14(2):117. https://doi.org/10.3390/info14020117.
  5. Kaal, W. A. (2021). Decentralized Autonomous Organizations: Internal governance and external legal design. Annals of Corporate Governance, 5(4), 237–307. https://doi.org/10.1561/109.00000028.
  6. Wright, A. (2021). The rise of decentralized autonomous organizations: Opportunities and challenges. Stanford Journal of Blockchain Law & Poli-cy. https://stanford-jblp.pubpub.org/pub/rise-of-daos
  7. Xu, M., Chen, X., & Kou, G. (2019). A systematic review of blockchain. Financial Innovation, 5, 27. https://doi.org/10.1186/s40854-019-0147-z.
  8. Bashir, I. (2023). Mastering Blockchain (4th ed.). Packt Publishing.
  9. Wang, G., Lin, Z., & Zheng, Y. (2020). A survey on blockchain consensus with a performance comparison of PoW, PoS and hybrid consensus algorithms. IEEE Access, 8, 94903–94924.
  10. Habib, G., Sharma, S., Ibrahim, S., Ahmad, I., Qureshi, S., & Ishfaq, M. (2022). Blockchain technology: Benefits, challenges, applications, and integration of blockchain technology with cloud computing. Future Internet, 14(11), 341. https://doi.org/10.3390/fi14110341.
  11. Mohanta, B. K., Panda, S. S., & Jena, D. (2018). An overview of smart contract and use cases in blockchain technology. In 2018 9th International Conference on Computing, Communication and Networking Technologies (ICCCNT) (pp. 1–4). IEEE. https://doi.org/10.1109/ICCCNT.2018.8494045.
  12. Popchev, I., Radeva, I., & Velichkova, V. (2022). Auditing blockchain smart contracts. In 2022 International Conference Automatics and Informatics (ICAI) (pp. 276–281). IEEE. https://doi.org/10.1109/ICAI55857.2022.9960058.
  13. He, D., Deng, Z., Zhang, Y., Chan, S., Cheng, Y., & Guizani, N. (2020). Smart contract vulnerability analysis and security audit. IEEE Network, 34(5), 276–282. https://doi.org/10.1109/MNET.001.1900656.
  14. Han, J., Lee, J., & Li, T. (2025). A review of DAO governance: Recent literature and emerging trends. Journal of Corporate Finance, 91, 102734. https://doi.org/10.1016/j.jcorpfin.2025.102734.
  15. Lustenberger, M., Wollenschläger, S., & Küng, L. (2025). DAO as digital governance tool for collaborative housing. Frontiers in Blockchain, 8, 1523951. https://doi.org/10.3389/fbloc.2025.1523951.
  16. Lustenberger, M., Spychiger, F., Küng, L., Bassi, E., & Wollenschläger, S. (2025). DAO research trends: Reflections and learnings from the first European DAO workshop (DAWO). Applied Sciences, 15(7), 3491. https://doi.org/10.3390/app15073491.
  17. Li, S., & Chen, Y. (2024). Governing decentralized autonomous organizations as digital commons. Journal of Business Venturing Insights, 21, e00450. https://doi.org/10.1016/j.jbvi.2024.e00450.
  18. Lloyd, T., O'Broin, D., & Harrigan, M. (2024). The on-chain and off-chain mechanisms of DAO-to-DAO voting. In Proceedings of the 2024 IEEE International Conference on Blockchain, pp. 649–655. IEEE. https://doi.org/10.1109/Blockchain62396.2024.00095.
  19. Tamai, S., & Kasahara, S. (2024). DAO voting mechanism resistant to whale and collusion problems. Frontiers in Blockchain, 7, 1405516. https://doi.org/10.3389/fbloc.2024.1405516.
  20. Fox, W. (2021). Decentralized autonomous organizations: Tax, legal, and accounting considerations. Congressional Research Service. https://crsreports.congress.gov/product/pdf/LSB/LSB10592.
  21. Rikken, O., Janssen, M., & Kwee, Z. (2019). Governance challenges of blockchain and decentralized autonomous organizations. Information Polity, 24(4), 397–417. https://doi.org/10.3233/IP-190154.
  22. Alghanmi, N. A., Alghanmi, N. A., Alghanmi, S. A., Zhao, M., & Hussain, F. K. (2025). Data-driven approach for selection of on-chain vs off-chain carbon credits data storage methods. Knowledge-Based Systems, 310, 112871. https://doi.org/10.1016/j.knosys.2024.112871.
  23. Monteiro, T. D., Sanchez, O. P., & Moraes, G. H. S. M. d. (2024). Exploring off-chain voting and blockchain in decentralized autonomous organizations. RAUSP Management Journal, 59(4), 335–349. https://doi.org/10.1108/RAUSP-08-2023-0162.
  24. Van Vulpen, P., & Jansen, S. (2023). Decentralized autonomous organization design for the commons and the common good. Frontiers in Blockchain, 6, 1287249. https://doi.org/10.3389/fbloc.2023.1287249.
  25. Alawadi, A., Kakabadse, N., Kakabadse, A., & Zuckerbraun, S. (2024). Decentralized autonomous organizations (DAOs): Stewardship talks but agency walks. Journal of Business Research, 178, 114672. https://doi.org/10.1016/j.jbusres.2024.114672.
  26. Reijers, A., Takes, F. W., & De Filippi, M. (2023). Understanding the governance of decentralized autonomous organizations (DAOs). In Proceedings of the 24th Annual International Conference on Digital Government Research (pp. 285–296).
  27. Fritsch, R., Müller, M., & Wattenhofer, R. (2022). Analyzing voting power in decentralized governance: Who controls DAOs? Blockchain: Research and Applications, 5(3), 100208. https://doi.org/10.1016/j.bcra.2024.100208.
  28. Goldberg, M., & Schär, F. (2023). Metaverse governance: An empirical analysis of voting within decentralized autonomous organizations. Journal of Business Research, 160, 113764. https://doi.org/10.1016/j.jbusres.2023.113764.
  29. Wang, S., Ding, W., Li, J., Yuan, Y., Ouyang, L., & Wang, F.-Y. (2019). Decentralized autonomous organizations: Concept, model, and applications. IEEE Transactions on Computational Social Systems, 6(5), 870–878. https://doi.org/10.1109/TCSS.2019.2938190.
  30. Santana, C., & Albareda, L. (2022). Blockchain and the emergence of decentralized autonomous organizations (DAOs): An integrative model and research agenda. Technological Forecasting and Social Change, 182, 121806. https://doi.org/10.1016/j.techfore.2022.121806.
  31. Fan, Y., Zhang, L., Wang, R., & Imran, M. A. (2023). Insight into voting in DAOs: Conceptual analysis and a proposal for evaluation framework. IEEE Network. https://doi.org/10.1109/MNET.137.2200561.
  32. Sharma, T., et al. (2024). Unpacking how decentralized autonomous organizations (DAOs) work in practice. In 2024 IEEE International Confer-ence on Blockchain and Cryptocurrency (ICBC) (pp. 416–424). IEEE. https://doi.org/10.1109/ICBC59979.2024.10634404.
  33. Saito, Y., & Rose, J. A. (2022). Reputation-based decentralized autonomous organization for the non-profit sector: Leveraging blockchain to en-hance good governance. Frontiers in Blockchain, 5, 1083647. https://doi.org/10.3389/fbloc.2022.1083647.
  34. Veys, C., Schär, F., & Wattenhofer, R. (2023). Evaluating governance activity in DAOs: A temporal perspective. arXiv preprint arXiv:2303.11363. https://arxiv.org/abs/2303.11363.
  35. Van Kerckhoven, S., & Chohan, U. W. (Eds.). (2024). Decentralized autonomous organizations: Innovation and vulnerability in the digital econo-my. Routledge. https://doi.org/10.4324/9781003449607.
  36. Hassan, S., & De Filippi, P. (2021). Decentralized autonomous organization. Internet Policy Review, 10(2), 1–10. https://doi.org/10.14763/2021.2.1556.
  37. Li, H., Dang, R., Yao, Y., & Wang, H. (2023). A review of approaches for detecting vulnerabilities in smart contracts within Web 3.0 applications. Blockchains, 1(1), 3–18. https://doi.org/10.3390/blockchains1010002.
  38. De Baets, C., Suleiman, B., Chitizadeh, A., & Razzak, I. (2024). Vulnerability detection in smart contracts: A comprehensive survey. arXiv preprint arXiv:2407.07922. https://arxiv.org/abs/2407.07922.
  39. Gilson, C., & Bouraga, S. (2024). Enhancing the democratic nature of voting processes within decentralized autonomous organizations. Digital Pol-icy, Regulation and Governance, 26(2), 169–187. https://doi.org/10.1108/DPRG-09-2023-0126.
  40. Fan, M., Ding, W., & Wang, S. (2025). Decentralized autonomous organization in built environments: Applications, potential and limitations. In-formation Systems and e-Business Management, 23(2), 345–367. https://doi.org/10.1007/s10257-025-00699-1.
  41. Borgogno, O., & Martino, E. (2024). Decentralised autonomous organisations: Targeting the potential beyond the hype. Law, Innovation and Tech-nology, 16(2), 392–431. https://doi.org/10.1080/17579961.2024.2392933.
  42. Allen, J. G. (2022). The legal status of decentralized autonomous organizations in the United States. European Law Blog. https://europeanlawblog.eu/2022/03/21/the-legal-status-of-daos-in-the-us/.
  43. Davidson, S. (2025). The nature of the decentralised autonomous organisation. Journal of Institutional Economics, 21. https://doi.org/10.1017/S1744137424000341.
  44. Shah, N. (2024). Hybrid-DAOs: Enhancing governance, scalability, and compliance in decentralized systems. arXiv preprint arXiv:2410.21593.
  45. Wang, S., Zhang, Y., & Li, X. (2023). Decentralized governance in DAOs: A framework for analysis and design. Information Systems Frontiers.
  46. Wright, A., & De Filippi, P. (2023). Legal frameworks for DAOs: Emerging models and regulatory approaches. Stanford Journal of Blockchain Law & Policy, 6(1), 45–67. https://stanford-jblp.pubpub.org/pub/legal-frameworks-daos.
  47. Kuma, A., & Singh, P. K. (2024). Artificial intelligence in blockchain-based decentralized autonomous organizations: A new governance model. IEEE Access, 12, 38910–38923. https://doi.org/10.1109/ACCESS.2024.3384338.
  48. Zheng, L., Huang, X., & Li, Y. (2024). AI-driven governance optimization in decentralized autonomous organizations. Journal of Systems and Software, 205, 111103.
  49. Phillips, K. (2021). The importance of interoperability, decentralization, and choice. In H. K. Baker, E. Nikbakht, & S. S. Smith (Eds.), The Emer-ald Handbook of Blockchain for Business (pp. 171–187). Emerald Publishing. https://doi.org/10.1108/978-1-83982-198-120211015.
  50. Han, P., Yan, Z., Ding, W., Fei, S., & Wan, Z. (2023). A survey on cross-chain technologies. Distributed Ledger Technologies, 2(2), 15:1–15:30. https://doi.org/10.1145/3573896.
  51. Villanueva Collao, V. (2025). Decentralized (?), but far from disorganized: A comparative analysis of legal wrappers and the evolving structure of DAOs. SSRN. https://ssrn.com/abstract=[insert if available]. https://doi.org/10.2139/ssrn.5143035.
  52. MakerDAO. (n.d.). The Maker Protocol: MakerDAO's Multi-Collateral Dai (MCD) system. MakerDAO Documentation. https://docs.makerdao.com.
  53. Reijers, W., Wuisman, I., Mannan, M., & De Filippi, P. (2018). Now the code runs itself: On-chain and off-chain governance of blockchain tech-nologies. Topoi: An International Review of Philosophy, 37(17). https://doi.org/10.2139/ssrn.3340056.
  54. Werder, M., & Treleaven, S. (2020). Decentralized finance: On blockchain- and smart contract-based financial markets. Journal of Risk and Finan-cial Management, 13(12), 330. https://doi.org/10.3390/jrfm13120330.
  55. Hassan, J., & De Filippi, P. (2018). Decentralized autonomous organizations: Challenges and opportunities. In D. Lee, K. Chuen, & R. Deng (Eds.), Handbook of Blockchain, Digital Finance, and Inclusion (Vol. 2). Academic Press.
  56. CryptoDose. (2024). DAO statistics 2024. https://cryptodose.net/learn/daos-statistics/.
  57. Xu, J., Weber, M., & Staples, S. (2022). A taxonomy of decentralized autonomous organizations (DAOs). In Proceedings of the IEEE International Conference on Decentralized Applications and Infrastructures (DAPPS) (pp. 36–45).
  58. Buterin, V. (2014, May 6). DAOs, DACs, DAs and more: An incomplete terminology guide. Ethereum Blog. https://blog.ethereum.org/2014/05/06/daos-dacs-das-and-more.
  59. Hassan, J., & De Filippi, P. (2021). Decentralized autonomous organization (DAO) fundamentals and governance structures. Frontiers in Block-chain, 4. https://doi.org/10.14763/2021.2.1556.
  60. Chen, Y., Sun, J., & Liu, M. (2024). AI-enabled governance: Integrating machine learning into decentralized organizations. IEEE Access, 12, 123456–123470.

Downloads

How to Cite

Patil, R., Swarnkar, S. K. ., Bhadane, D. Y. ., Poddar, G. M. ., Patil, M. P. ., & Sonawane, R. C. . (2025). Exploring governance frameworks and decision processes in ‎blockchain-based decentralized autonomous organizations. International Journal of Basic and Applied Sciences, 14(1), 166-180. https://doi.org/10.14419/h0y6dw98

Received date: April 2, 2025

Accepted date: May 1, 2025

Published date: May 5, 2025