Understanding DAOs: An Empirical Study on Governance Dynamics

As a typical instance of human–computer interaction, the notion of decentralized autonomous organization (DAO) represents an organization constructed by automatically executed rules, such as via smart contracts, incorporating features of the permissionless committee, transparent proposals, and fair contributions by stakeholders. As of May 2023, DAO has impacted over $24.3B market caps. However, there are limited studies focused on this emerging field. To fill the gap, we start from the ground truth by empirically studying the breadth and depth of the DAO markets in mainstream public chain ecosystems in this article. We dive into the most widely adoptable DAO launchpad, Snapshot, which covers 95% of the wild DAO projects for data collection and analysis. By integrating extensively enrolled DAOs and corresponding data measurements, we explore statistical resources from Snapshot and analyze data from 581 DAO projects, encompassing 16 246 proposals over the course of 3+ years. Our empirical research has uncovered a multitude of previously unknown facts about DAOs, spanning topics such as their status, features, performance, threats, and ways of improvement. We have distilled these findings into a series of key insights and takeaway messages, emphasizing their significance. Notably, our study is the first of its kind to comprehensively examine the DAO ecosystem with a focus on scale and scope of data, real-time relevance, practical implementations, and comprehensive metrics, addressing critical gaps in the current literature.