Analysis of Decentralization in Governance and Financial Efficiency of Companies Studying the Relationship in the Field of Decentralized Finance

Kirill Kolmykov ()
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Kirill Kolmykov: Department of Economics, Lomonosov Moscow State University

No 61, Working Papers from Moscow State University, Faculty of Economics

Abstract: Currently, the advantages of decentralization through blockchain technology in the financial sector are actively discussed. In this article, we investigate the decentralization in the governance of Decentralized Autonomous Organizations (DAO) using the Gini coefficient as an indicator of inequality among the token owners. This metric is analyzed in the context of Return on Investment (ROI) for companies in the decentralized finance (DeFi) sector. Our goal is to understand whether the level of "real" decentralization in blockchain-based governance affects financial efficiency, and to explore the benefits and possible limitations of such an approach. This analysis allows for a deeper understanding of the significance and impact of decentralization on the functioning and productivity of organizations in the DeFi sector, and to determine the extent to which this impact is positively or negatively reflected in their success and profitability. Additionally, the results of this analysis will provide a fuller understanding of the dynamics and potential of blockchain for organization governance.

Keywords: Blockchain; Decentralized Finance; Cryptocurrency; DAO (search for similar items in EconPapers)
JEL-codes: G23 G32 O16 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2023-12
New Economics Papers: this item is included in nep-pay
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