Building the Foundation: a Constitutional Framework for Decentralized Autonomous Organizations

Abstract

Decentralized Autonomous Organizations (DAOs) are organizations governed by smart contracts and blockchain technology. DAOs can use a constitution to clarify their operations. Despite their increasing prevalence, the contents of DAO constitutions and their role in governing these organizations remain relatively unexplored. This study aims to fill this gap by investigating the contents of existing DAO constitutions. Using a grounded theory approach, we collected a sample of 27 constitutional documents from active DAOs. These documents were systematically coded, resulting in a framework of unified concepts that populate DAO constitutions. Our findings reveal several thematic areas DAO constitutions, including technology, governance, finance, and community. After its creation, expert interviews validated the framework, confirming its relevance and suggesting refinements. This research contributes to a deeper understanding of the governance mechanisms within DAOs and provides a foundational framework for future studies in this area.