Value Distribution in OSS: The Role of DAOs in Enhancing Collaborative Governance

Abstract

Open-source software (OSS) projects face significant challenges in establishing fair and inclusive value distribution models that appropriately reward all contributors. This study employs design science research to develop meta-requirements and three design principles for a blockchain-based solution addressing these challenges. Using multi-grounded theory, we analyze data from in-depth interviews with OSS practitioners, complemented by social media content analysis, to examine value distribution, governance, and collaboration in OSS ecosystems. By integrating empirical findings with Decentralized Autonomous Organization (DAO) governance mechanisms, we derive three design principles for a sustainable governance framework that enables systematic value distribution in OSS projects while enhancing project collaboration. Our findings contribute to both theory and practice by providing actionable guidelines for implementing DAO-based governance in OSS environments.