Decentralised Autonomous Organisations as Commons

This chapter examines Decentralised Autonomous Organisations (DAOs) as emergent forms of 'software commons' or 'knowledge commons,' applying Elinor Ostrom’s (1990, 2005) Institutional Analysis and Development framework. It argues that DAOs, characterised by their reliance on blockchain-enabled smart contracts and elimination of hierarchical management represent a novel form of collective decision-making and governance. The analysis distinguishes between on-chain and off-chain governance models, evaluating their effectiveness in ensuring decentralisation and addressing internal conflicts, with particular emphasis on the unique conflict resolution mechanisms available to DAOs, such as forking and 'rage-quitting'. An important insight is that the Rules in Use in on-chain governance and off-chain governance are likely to be very different. The chapter contributes to our understanding of decentralisation within different DAO structures, conflict resolution, and the robustness decentralised systems in managing common-pool resources.