The study, authored by Julie Saesen, Bastian Kindermann, Darius Abel, and Steffen Strese, explores how specific design elements of on-chain governance in decentralized autonomous organizations (DAOs) influence the performance of governance tokens.
The authors find that establishing a minimum token quorum can enhance token performance, whereas voting incentive mechanisms, such as NFTs or additional governance tokens, can lead to negative token performance. Moreover, they identify founders’ stake as a contingent factor moderating these signals.
Publication with Open Access:
Julie Saesen, Bastian Kindermann, Darius Abel und Steffen Strese: The power of governance: A study on the relationship between on-chain DAO governance and token performance. in: Journal of Information Technology. https://doi.org/10.1177/02683962251343627
