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Incentivization in Decentralized Autonomous Organizations

Authors: Alexander Braun; Niklas Häusle; Stephan Karpischek;

Incentivization in Decentralized Autonomous Organizations

Abstract

We propose a mechanism for the incentivization of workers in decentralized autonomous organizations instantiated on the blockchain. Our approach relies on staking, a digital form of collateralization that requires network participants to acquire cryptographic tokens and deposit them in a smart contract or bound wallet. In case of worker malfeasance, the collateral can be reallocated to the customers to compensate them for their losses. We use the nascent decentralized insurance market as a laboratory to apply our model based on real-life data and show that relatively small stakes are sufficient to maximize network throughput, which is equivalent to welfare.

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    influence
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
8
Top 10%
Top 10%
Top 10%
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