A DAO-based Blockchain Donation System with Smart Contract-Driven Project Prioritization

Abstract

Existing donation platforms suffer from limited transparency, centralized governance, and minimal donor participation in fund allocation decisions. Donors often lack visibility into how their contributions are used and have no role in prioritizing charitable projects. These shortcomings undermine trust and reduce engagement. In this paper, a DAObased blockchain donation system is proposed to address these challenges by enabling decentralized, transparent, and automated governance. Built on the Ethereum blockchain using Ganache, MetaMask, and Solidity smart contracts, the system allows verified donors to vote on project prioritization. Smart contracts autonomously execute fund distribution based on vote proportions, removing administrative discretion. The platform consists of eight functional modules, developed using Agile methodology, and implements key DAO features such as token-based eligibility, one-person-one-vote enforcement, and trustless execution. Functional testing validated 24 key system features, while security tests confirmed strong password policies, MetaMask-based identity, and reCAPTCHA protection. User acceptance testing with total 20 donors and 15 administrators resulted in satisfaction scores of 4–5 on a 5-point Likert scale. This research demonstrates how DAO principles can be applied to real-world philanthropic ecosystems, transforming donation systems from passive funding channels into participatory, community-governed platforms.