MANAGEMENT IN DECENTRALIZED AUTONOMOUS ORGANIZATIONS (DAO): ANALYSIS OF PROPOSALS
MANAGEMENT IN DECENTRALIZED AUTONOMOUS ORGANIZATIONS (DAO): ANALYSIS OF PROPOSALS

Summary/Abstract: The emerging trend in information technology, Web 3.0, offers the necessary technologyto build Decentralized Autonomous Organizations (DAOs). These innovative, fully digitalorganizational structures utilize both human and artificial intelligence (AI). Operating entirelyin the virtual realm and unaffiliated with any physical entities, DAOs function autonomously,free from external interference. Additionally, DAOs hold virtual assets that can be usedto create and sign digital contracts with humans or for investment purposes. Governancewithin a DAO is a collaborative effort, managed by both AI and token holders.My previous research established that DAOs have features and tools that empower theirmanagers, whether AI or human, to carry out all four fundamental functions of management:Planning, Organizing, Controlling, and Leading. The cornerstone of DAO management is itsproposal and voting mechanisms, which constitute its core functionalities.The aim of this study was to investigate how DAOs use proposals to execute these funda-mental functions of management. Given the transparent nature of DAOs and the permanentarchiving of all proposals on the blockchain, I was able to examine a comprehensive dataset ofproposals across a majority of existing DAOs. Latent Dirichlet allocation (LDA) was employedfor the analysis of proposal titles and content. As of the data collection date, a total of 15,256DAOs were available for study, of which 175 were ultimately selected for in-depth analysis.The most significant conclusion is that proposals are primarily utilized for the Planningand Organizing functions. The study also revealed that a considerable portion of manage-ment activities in DAOs occurs outside the formal proposal and voting mechanisms.

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