FEATURES OF FUNCTIONING OF DECENTRALIZED AUTONOMOUS ORGANIZATIONS

Abstract

Introduction. The functioning of decentralized autonomous organizations (DAOs) is based on the principles of blockchain technology and smart contracts. The functioning of the DAO is based on the understanding and compliance of smart contracts, the activity and participation of participants, as well as the development and resolution of emerging challenges in this experimental field. The purpose of the presented work is to determine the main features of the functioning of decentralized autonomous organizations and to present a conceptual approach to the development of the presented organizations. Materials and methods. The main information base of the research is the works of leading scientists in the field of digital economy, the implementation of digital technologies, the problems of the management decentralization system at its various levels, and the use of modern management and digital tools to ensure the optimization of management decisions. The main methods of research are methods of analysis, synthesis, comparison, induction, deduction and a graphic method for visual display of the presented research results. Results and discussion. The essence of decentralized autonomous organizations is to create an ecosystem in which management and decision-making is carried out on the basis of blockchain technology and smart contracts. The basic idea is that DAOs have no centralized governing body or leadership. Decisions are made collectively by members of the organization. The main mechanism of management and interaction in the DAO is smart contracts, which are software codes on the blockchain. They automate the execution of agreements and define the rules of the organization. Cryptocurrency and tokens are used for funding and participation in DAOs. Members can purchase tokens that give them the right to vote and participate in the organization's decisions. All transactions and decisions are recorded in the blockchain, which guarantees transparency and irreversibility of actions. Information is open to all participants. Conclusions. Decentralized autonomous organizations are a paradigm of a new approach to organizational management and interaction of participants, aimed at increasing transparency, democratization and autonomy in resource management and decision-making. Success largely depends on the ability to understand risks and resolve technical and legal issues, as well as community support and participation of qualified professionals in the development and evolution of the DAO concept.