ANALYSIS OF DECENTRALIZED AUTONOMOUS ORGANIZATIONS IN CORPORATE GOVERNANCE

Abstract

In the modern world, corporate governance faces numerous challenges, including power centralization, non- transparent decision-making, inefficient resource allocation, and corruption risks. Traditional organizations rely heavily on human factors, which can lead to delays, conflicts of interest, and excessive costs. In this context, Decentralized Autonomous Organizations (DAOs) offer an alternative approach by leveraging smart contracts and blockchain technology for automated and transparent governance.One of the key advantages of DAOs is that they eliminate the need for intermediaries and centralized structures, replacing them with algorithmic mechanisms for voting and financial management. This approach enables each member of the organization to have a tangible influence on decision-making while ensuring a fair distribution of resources based on predefined rules embedded in smart contracts. In an era of digital transformation, such mechanisms are crucial as they establish trust among participants regardless of their background or status and ensure full transparency in all processes.This is achieved by recording all transactions, votes, and decisions on the blockchain, where they cannot be altered or concealed. Such a governance model significantly enhances community trust and addresses the issue of centralized management, where critical decisions are made by a limited group of individuals, potentially leading to flawed development strategies or conflicts. Governments in various countries, including the United States and European Union member states, are actively exploring ways to integrate DAOs into existing legal frameworks, highlighting the growing interest in leveraging these structures for real-world business applications. Despite certain legal uncertainties, this field continues to evolve rapidly, with successful projects already operating under decentralized governance mechanisms.The development of Decentralized Autonomous Organizations in corporate governance represents a crucial and promising direction, enabling businesses to significantly improve process efficiency, ensure fairness and transparency in decision-making, and adapt to the evolving digital economy. Given the rapid rise of Web3 technologies, DeFi, and other decentralized systems, it is evident that DAOs will become an integral part of the future corporate governance landscape.