Is DAO Governance Fostering Democracy? Reviewing Decision-making in Decentraland

Abstract

This study analyzes voting dynamics and proposal outcomes within Decentraland, a prominent Decentralized Autonomous Organization (DAO), by examining its voting behaviors and decision outcomes. We offer insights into how a DAO is employed to facilitate decision-making and discern the nature of the issues about which decisions are made. DAOs promise horizontal and democratic decision-making. However, our research reveals a high concentration of voting power among a few members despite them not utilizing it to a great extent. Additionally, we identify the prevailing themes in decision-making processes within the organization through topic modeling. The primary topics identified are the effective management and governance of the platform and community and the platform’s strategic growth, with a particular emphasis on wearable technology. This research addresses fundamental questions regarding the democratic integrity of DAOs and their ability to achieve equitable representation and decision-making.