Paper Type
Short
Paper Number
PACIS2025-1796
Description
Decentralized Autonomous Organizations (DAOs) rely on the voluntary contributions of users to achieve collective decision-making. In recent years, delegation mechanism has been introduced in order to enhance users’ efficiency in governance engagement. However, the issues of voter apathy and rational ignorance still remain. To investigate the impact of delegation mechanism, this study selects MakerDAO as the treatment group and Lido as the control group, using a difference-in-differences model to explore the influence of delegation mechanism on user participation before and after its implementation. It also examines the moderating roles of power structure and task division of DAOs in shaping the impact of implementing delegation mechanism. The results show that delegation mechanism plays a negative effect on users’ governance participation, while power structure and task division may mitigate those effects. This empirical study aims to provide insights for mechanism design and management in DAO governance.
Recommended Citation
Liu, Zhiyong; Lu, Feixu; and Lu, Changjian, "The Impact of Delegation Mechanism on Governance Participation in DAOs" (2025). PACIS 2025 Proceedings. 6.
https://aisel.aisnet.org/pacis2025/blockchain/blockchain/6
The Impact of Delegation Mechanism on Governance Participation in DAOs
Decentralized Autonomous Organizations (DAOs) rely on the voluntary contributions of users to achieve collective decision-making. In recent years, delegation mechanism has been introduced in order to enhance users’ efficiency in governance engagement. However, the issues of voter apathy and rational ignorance still remain. To investigate the impact of delegation mechanism, this study selects MakerDAO as the treatment group and Lido as the control group, using a difference-in-differences model to explore the influence of delegation mechanism on user participation before and after its implementation. It also examines the moderating roles of power structure and task division of DAOs in shaping the impact of implementing delegation mechanism. The results show that delegation mechanism plays a negative effect on users’ governance participation, while power structure and task division may mitigate those effects. This empirical study aims to provide insights for mechanism design and management in DAO governance.
Comments
Blockchain