From Principles to Practice: Measuring the Impact of Governance Reforms in DAOs

Andrea Cesaretti ()

Chapter 2 in DAO Governance in Theory and Practice, 2025, pp 17-39 from Springer

Abstract: Abstract This chapter develops a systematic framework for evaluating the effectiveness of governance reforms in decentralized autonomous organizations (DAOs). While dynamic quorum, liquid delegationLiquid delegation, and reputationReputation systems have been widely adopted as corrective mechanisms, their real impact on participation, legitimacyLegitimacy, and decision quality remains underexplored. The chapter first categorizes these reforms conceptually, outlining their design logic and hypothesized benefits, greater legitimacy for critical proposals, improved deliberative quality through delegation, and more meritocratic outcomes via reputation metrics. Building on this taxonomy, the chapter proposes a multi-dimensional methodology for assessing impact across four domains: deliberative effectiveness, perceived legitimacyLegitimacy, inclusiveness, and long-term resilience. A triangulated approach combines on-chain analytics (e.g., quorum rates, delegation patterns), off-chain dynamics (e.g., forums, governance calls), and perceptual data (e.g., surveys, sentiment analysis) to capture both technical performance and socio-cultural legitimacy. Comparative case studies, including Aragon, Gitcoin, and Optimism, illustrate how the same mechanism can yield divergent results depending on adoption timing, community culture, and communication strategies. By integrating quantitative indicators with qualitative insights, the chapter advances DAO governanceDAO governancedelegation systems evaluation beyond anecdotal claims and cosmetic metrics. It argues that reforms must be treated as iterative experiments, where sustained measurement and adaptive learning are essential for distinguishing genuine innovation from governance-washing.

Date: 2025
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DOI: 10.1007/978-3-032-09675-3_2

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