Code, Community, and Conflict

Abstract

Abstract Decentralized autonomous organizations (DAOs) are a still-evolving organizational form. As such, they face unique challenges in dispute resolution. These challenges start with the definition of what constitutes a DAO dispute, compounded by the oftentimes pseudonymous identity of parties, the absence of traditional hierarchical structures, and opaque power dynamics. In addition, governance and operations are frequently—though not invariably—implemented using blockchain technology and smart contracts, adding further complexity. This chapter explores the intricacies of DAO disputes by attempting a definition and examining both internal conflicts and external challenges, outlining DAO-specific obstacles in dispute resolution and drawing from real world examples, including interviews with DAO practitioners. There is a clear need for DAOs to plan for disputes and establish clear rules and guidelines for dispute resolution (both on- and off-chain) from the outset.