The Feasibility of Decentralized Social Governance: Can DAO Replace Traditional Government Organizations?

Abstract

Decentralized Autonomous Organizations (DAOs) have emerged as a revolutionary alternative to traditional governance structures, offering transparency, efficiency, and community-driven decision-making. This paper explores the core characteristics of DAOs, their potential applications in social governance, and their challenges compared to traditional government institutions. Through case studies, including CityDAO, Gitcoin Grants, UkraineDAO, VitaDAO, Proof of Humanity, and Kleros, we analyze real-world implementations of DAO governance. Despite the advantages, DAOs face legal uncertainties, governance inefficiencies, and security vulnerabilities that hinder their broader adoption. The study further examines the prospects of integrating DAOs into traditional governance frameworks and the future evolution of decentralized governance models. Addressing these challenges through technological innovation and regulatory adaptation will be crucial for DAOs to play a sustainable role in global governance.