CONCEPTUAL DESIGN PRINCIPLES FOR VISUALIZATION-ENHANCED DAO GOVERNANCE IN COOPERATIVES

Abstract

Cooperatives continuously faced governance challenges related to transparency, accountability, and member participation as decision-making processes became more complex. Hence, it was proposed that blockchain-based Decentralized Autonomous Organizations (DAOs) could serve as a governance mechanism. Despite this potential, DAO governance systems remained difficult for many cooperative members to trust, adopt, and interpret. This is even more so when the governance processes involve technically complex blockchain information. Therefore, this study aims to develop a set of conceptual design principles to explain how visualization can support trustworthy DAO governance in a cooperative. This study adopted a design-oriented conceptual approach. Focusing on Cognitive Fit Theory and Trust Theory, and current research on blockchain governance and cooperative decision-making, this paper depicts how visualization functions as a cognitive mechanism that drives members’ understanding of governance processes and outcomes. The analysis identified six key principles, which included emphasized interpretability over technical completeness, cognitive load reduction, process visibility, inclusivity, and trust support in visualization-based DAO governance. These principles highlighted that transparency in blockchain was not achieved only through data availability, but via visual presentation of governance information in forms that align with users’ cognitive processing capabilities. This paper contributed to the body of knowledge involving digital governance and blockchain adoption by offering theory-informed design knowledge that extends beyond the technology acceptance model. The proposed design principles provide a foundation for future research and offer practical guidance for organizations and system developers in supporting inclusive, understandable, and trustworthy DAO-based governance in cooperatives.