Decentralizing Work: Blockchain and DAOs Transforming the Gig Economy

Abstract

The rapid rise of the gig economy has reshaped modern labour markets, offering flexibility but also exposing workers to instability, low protection, and algorithmic control. This paper explores how Blockchain technology and Decentralized Autonomous Organizations (DAOs) can address these structural challenges by decentralizing trust, governance, and value distribution. Drawing upon institutional theory, transaction cost economics, and network governance frameworks, the study analyses how blockchain’s core features—immutability, transparency, and smart contracts—enable fairer, more autonomous work environments. DAOs, as digital cooperatives, allow workers to participate directly in decision-making and profit-sharing, reducing dependence on centralized platforms. The literature reviewed highlights both opportunities and limitations: while blockchain can ensure transparent payments and portable reputations, issues of scalability, regulation, and digital inclusion persist. Overall, the analysis suggests that blockchain-enabled DAOs represent an emerging paradigm for equitable and trust-based digital labour, redefining how work, ownership, and governance operate in the gig economy.