Abstract:
The governance technology of decentralized autonomous organizations (DAOs) provides an effective solution for solving existing organizational management issues. Governanc...Show MoreMetadata
Abstract:
The governance technology of decentralized autonomous organizations (DAOs) provides an effective solution for solving existing organizational management issues. Governance mechanisms of DAOs are usually encoded in smart contracts in the form of rule sets and executed automatically. However, the mechanism’s logical flaws and code errors expose DAOs to unpredictable risks. Complex adaptive dynamics computer-aided design (CadCAD) can test the effectiveness of the mechanisms through simulation. Nonetheless, as DAOs are typical complex systems with social and engineering complexity, managing, controlling, and supervising their operation through traditional methods are difficult. The parallel intelligence theory based on artificial societies, computational experiments, and parallel execution (ACP) method provides an effective research framework and practical method for solving DAOs’ governance issues. Therefore, in this article, we propose a parallel mechanism verification method and execution system, namely, complex adaptive systems for computer-aided dynamic design (casCAD2) as an extension of cadCAD. Leveraging parallel intelligence and cyber–physical–social systems (CPSS), casCAD2 is capable of probing into the laws that govern system evolution within a simulated environment. It serves as a robust tool for verifying the efficacy of DAOs’ mechanisms and predicting their potential risks. We also build a parallel market-based anchoring mechanism (MAM) system to demonstrate how it can be used for DAOs’ mechanism verification. This study can provide a new research method and application system for DAOs’ effective governance.
Published in: IEEE Transactions on Computational Social Systems ( Volume: 11, Issue: 2, April 2024)