Dynamics and Dichotomies of Decentralized Autonomous Organizations

Gokul B Alex
2 min readApr 26, 2024
Photo by Arne Tho on Unsplash

Decentralized Autonomous Organizations (DAO) have emerged in an era of entangled economies, economies that morph, merge, mince and montage into nascent networks in an episodic manner. They are social structures powered by the ethos of communicative rationality, collective cognizance, deferred synchrony, asymptotic aggregations, reflexive behaviors, and ephemeral ensembles.

It is interesting to note that decentralization and autonomy can coalesce only when centralization of systems reach a certain level of convergence and complexity. It is because autonomy needs certain degrees of freedom. Decentralization presupposes a centralized system in existence. Without a centralized system in context, what is there to decentralize? Thus decentralization needs access to centralized resources in a recursive and recurrent manner with sufficient degrees of freedom.

In other words, bootstrapping DAOs without a threshold of centralization posit a formidable challenge to any systems architect. Even when there is sufficient degrees of freedom in the decentralized system, autonomy comes through the cohesiveness and symmetry of action. Without these attributes, it is difficult to exert autonomy as every actor will be moving in myriads of ways and then the entire system will fall apart.

The velocity of decentralization is another factor influencing the stability of DAOs. If the velocity of decentralization is incoherent with the rate of absorption of autonomy in the system, it will result in a mirage. It will generate a DAO, yet it cannot function as a convergent and cohesive entity.

Thus decentralized autonomous organizations and their derivatives can create an economy only when they connect with each other through transparent terms and trajectories with privacy preserving and interoperability inspired protocols and platforms.