What are Decentralized Autonomous Organizations (DAOs), and how do they differ from traditional organizations?

Decentralized Autonomous Organizations (DAOs) are innovative organizational structures that enable collective coordination and reshape digital collaboration. Unlike traditional organizations, DAOs leverage open systems to enhance transparency, automation, and community involvement. This shift allows DAOs to create more inclusive and sustainable business models. DAOs operate through decentralized applications and smart contracts, automating processes and decision-making, while traditional organizations rely on hierarchical structures and centralized control.

Can you explain the four core elements of the DAO business framework?

The DAO business framework comprises four core elements: Tokenomics, Transactions, Value System, and Strategy. Tokenomics involves the design and management of tokens to incentivize participation and govern decision-making. Transactions refer to the various interactions facilitated by DAOs through decentralized applications and smart contracts. The Value System defines how value is created, captured, and delivered, including the value proposition and delivery methods. Finally, the Strategy element outlines the DAO's mission, vision, and strategic priorities, leveraging open business principles.

How does 'Tokenomics' influence the success of a DAO?

Tokenomics is a critical element, as it involves the design, issuance, and management of tokens within the DAO ecosystem. Effective Tokenomics align the interests of all stakeholders by incentivizing participation, rewarding contributions, and governing decision-making processes. Poor tokenomics can lead to misalignment, lack of participation, and ultimately, the failure of the DAO. Well-designed tokenomics foster a sustainable DAO economy by creating a clear value proposition for token holders and participants.

What role do open business principles play in the context of DAOs?

The application of open business principles to DAOs enables organizations to foster collaboration, enhance transparency, and drive innovation. By embracing open systems, DAOs can unlock new opportunities for value creation and capture. This leads to more inclusive and sustainable business models. These principles are foundational to the Strategy element of the DAO business framework, supporting community engagement, collaborative decision-making, and the overall adaptability of the DAO.

What future research areas are important for DAOs and their business value?

Future research should focus on several key areas. Understanding the diverse factors influencing stakeholder participation and collaboration in multi-agent DAO business models is essential. Aligning incentive structures with value management systems is crucial for preventing failures in open systems. Categorizing DAO business model patterns through case analysis can reveal unique traits and identify factors influencing success or failure. Further research should also explore the utility of the DAO business framework in real-world organizational contexts to refine and validate its effectiveness.

Decentralized Autonomous Organization (DAO) as a futuristic network.

Unlocking DAO Business Value: The Open Systems Advantage

Jordan Keane in Tech & Innovation December 2025 • 4 min read.

"Explore how Decentralized Autonomous Organizations (DAOs) are revolutionizing business through open systems, creating new avenues for value and collaboration."

Decentralized Autonomous Organizations (DAOs) are rapidly emerging as innovative organizational structures, enabling collective coordination and reshaping digital collaboration. These new structures promise to revolutionize how organizations operate by enhancing transparency, automation, and community involvement.

Despite the transformative potential of DAOs, a clear understanding of the business value derived from implementing DAO characteristics remains limited. Many organizations find it challenging to bridge the gap between the technological promise and the actual business outcomes. This article addresses this gap by exploring how an open systems perspective can illuminate the business applicability of DAOs.

By applying a best-fit framework methodology, we systematically review the business applicability of DAOs through the lens of open systems. This approach combines framework and thematic analysis to discuss how open business principles apply to DAOs. We introduce a novel DAO business framework comprising four core elements: tokenomics, transactions, value systems, and strategy, each with corresponding sub-characteristics.

The DAO Business Framework: Core Elements

Decentralized Autonomous Organization (DAO) as a futuristic network.

The DAO business framework consists of four core business elements that drive transformative potential and guide organizations in innovating more inclusive business models. These elements ensure that DAOs not only function efficiently but also create substantial value for all stakeholders.

Here are the core element of DAO business frameworks:

Tokenomics: This involves the design, issuance, and management of tokens within the DAO ecosystem. Tokens incentivize participation, reward contributions, and govern decision-making processes. Effective tokenomics align the interests of all stakeholders and foster a sustainable DAO economy.
Transactions: DAOs facilitate various types of transactions through decentralized applications and smart contracts. These transactions can range from simple token transfers to complex business interactions. Transparency, security, and immutability are key characteristics of DAO transactions.
Value System: A DAO's value system defines how value is created, captured, and delivered within the organization. It encompasses the value proposition, value creation mechanisms, value capture strategies, and value delivery methods. A well-defined value system ensures that the DAO provides meaningful benefits to its members and the broader community.
Strategy: DAOs require a clear strategy to achieve their goals and objectives. This includes defining the DAO's mission, vision, and strategic priorities. An effective DAO strategy leverages open business principles to foster collaboration, innovation, and community engagement.

The application of open business principles to DAOs enables organizations to foster collaboration, enhance transparency, and drive innovation. By embracing open systems, DAOs can unlock new opportunities for value creation and capture, ultimately leading to more inclusive and sustainable business models.

Future Directions and Opportunities

Given the novelty of DAOs, numerous opportunities exist for future exploration. Further research should focus on the diverse factors influencing stakeholder participation and collaboration in multi-agent DAO business models. Aligning incentive structures with value management systems is crucial for preventing failures in open systems. By categorizing DAO business model patterns through case analysis, researchers can reveal unique traits and identify factors influencing success or failure. Future research should also explore the utility of the DAO business framework in real-world organizational contexts to refine and validate its effectiveness.