DAOs (Decentralized Autonomous Organizations) are fundamentally changing how companies are run in several key ways, through decentralized decision-making, social audibility, and limited liability principle. The following research examines the changes that DAOs bring to conventional corporate governance and analyses how they are being implemented worldwide. DAOs have advantages that include the decentralization of power, and the ability to improve the speed with which innovation occurs. However, they present obstacles that include legal uncertainty, problems of governance, and security vulnerabilities. This research comprehensively examines how DAOs could disrupt corporate processes such as decision-making, stakeholders’ interactions, and power relations. It then reviews the current legal and regulatory environment for DAOs across different legal systems and considers the notion of liability issues. The research also presents a checklist of strengths and weaknesses for DAOs in emerging markets based on considerations such as technology adaptation, regulatory definition, and community engagement. When the trends of socioeconomic impacts are unveiled, it will be possible for lawmakers, managers, and investors to adapt to new conditions and utilize the evolved concept of corporate governance through DAOs.
R et al. (2024) studied this question.