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DAOs as property owners: a conceptual exploration from the perspective of organizational system theory

Author

Listed:
  • Michael Lustenberger

    (ZHAW Zurich University of Applied Science)

  • Florian Spychiger

    (ZHAW Zurich University of Applied Science)

  • Lukas Küng

    (ZHAW Zurich University of Applied Science
    University of Nicosia)

  • Jens Martignoni

    (ZHAW Zurich University of Applied Science)

Abstract

The development of Bitcoin and its underlying technology blockchain has enabled a new phenomenon called decentralized autonomous organizations (DAOs). DAOs can be perceived as self-governing organizations whose management is based on programmed and encoded rules on a decentralized and distributed peer-to-peer network. These DAOs typically manage and allocate funds, often in the form of cryptocurrencies. However, in recent years, a variety of DAOs have been established to provide services (e.g., currency exchange, project financing), curate collections (e.g., art collections), or own and manage real assets (e.g., land). Currently, DAO literature focuses mainly on online communities managing digital assets; however, DAOs owning physical properties differ from them in localized communities, asset indivisibility, and additional complexity in collective acquisition, ownership, limited physical capacity, and decentralized governance. Such property-owning DAOs are interesting, because they fuel the transition from purely online organizations into organizations integrating with the physical world. From an organizational system theory perspective this article explores how a DAO owning properties could be designed by exploring three DAO projects that own properties. Applying a conceptual research design, we first identify DAO Design Principles obtained by traditional organizational system theory, followed by examining and describing the core organizational principles for property-owning DAOs. Based on a comprehensive discussion of the conceptual findings, we present a research agenda for further studies on DAOs owning properties.

Suggested Citation

  • Michael Lustenberger & Florian Spychiger & Lukas Küng & Jens Martignoni, 2025. "DAOs as property owners: a conceptual exploration from the perspective of organizational system theory," Journal of Organization Design, Springer;Organizational Design Community, vol. 14(2), pages 127-143, June.
    • Handle: RePEc:spr:jorgde:v:14:y:2025:i:2:d:10.1007_s41469-025-00186-4
    DOI: 10.1007/s41469-025-00186-4
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    References listed on IDEAS

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    1. Ying-Ying Hsieh & Jean-Philippe Vergne & Philip Anderson & Karim Lakhani & Markus Reitzig, 2019. "Correction to: Bitcoin and the rise of decentralized autonomous organizations," Journal of Organization Design, Springer;Organizational Design Community, vol. 8(1), pages 1-1, December.
    2. Santana, Carlos & Albareda, Laura, 2022. "Blockchain and the emergence of Decentralized Autonomous Organizations (DAOs): An integrative model and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    3. Hassan, Samer & De Filippi, Primavera, 2021. "Decentralized Autonomous Organization," Internet Policy Review: Journal on Internet Regulation, Alexander von Humboldt Institute for Internet and Society (HIIG), Berlin, vol. 10(2), pages 1-10.
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    5. Kyungmoo Heo & Sangyoon Yi, 2023. "(De)centralization in the governance of blockchain systems: cryptocurrency cases," Journal of Organization Design, Springer;Organizational Design Community, vol. 12(3), pages 59-82, September.
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