Charitable giving in legacy systems is subject to several major downsides that can be addressed with decentralized autonomous organizations (DAOs). Centralized legacy charitable organization often lack foundational transparency and are subject to significant power imbalances that favor the donor and lead to centralization of the charity. Existing legal incentives often lead to so-called Zombie Charities in many jurisdictions. The donative intent can therefore often not be optimally fulfilled. DAOs combine unique feedback loops and transparency features with community governance that address the existing shortcomings of charitable organizations in decentralized structures.

Key Words: Common Good, Charity, Decentralized Autonomous Organization, Finance,Token Models, Cryptocurrencies, Feedback Effects, Emerging Technology, Tokens, Blockchain, Distributed Ledger Technology

JEL Categories: K20, K23, K32, L43, L5, O31, O32

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3981021

Funding surpasses $2 million for this charity DAO

Published by Wulf Kaal - Professor, Book Author, Consultant

Professor Wulf A. Kaal is a professor of law and a leading authority on emerging decentralized technology. He authored over 100 articles and several books.

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