Collective Action in Decentralized Autonomous Organizations (DAOs): Free Riding and Algorithmic Design

In this paper I employ a mixed methods approach in an effort to study a novel family of case studies in human collectivization - DAOs (Decentralized Autonomous Organizations). Born out of the blockchain ecosystem and the sociology of the internet, these organizations greatly overlap with common pool resource systems and common goods systems studied in traditional literature. Under this lens, DAOs are found to overcome problems of cooperation by utilizing algorithmic governance. Six case studies are discussed, and specific designs are examined with regards to the tendency of the members to free ride. Ultimately, DAOs are found to be an immature - yet promising, blueprint for the future of human cooperation, fully compatible and relevant to the work of Samuel Olson and Elinor Ostrom.