Collective Strategic Decision-Making in DAOs

In this short paper, we present research in progress that examines the dimensions driving collective strategic decision-making in DAOs. Drawing on digital trace data from three major DAOs, we explore how these organizations allocate funds to pursue strategic aims. We identify two pairs of conflicting decision-making logics: one pair reflects the dilemma between collective and representational governance, and the other captures the tension between pursuing synergistic growth and pursuing competitive growth. Together, these tensions underpin a framework that portrays four primary modes or constellations of strategic decision-making within DAOs. We argue that as DAOs mature from niche experiments to mainstream organizational forms, their strategic decision-making will increasingly emphasize growth and operational efficiency. This paper contributes to the growing body of IS research on DAOs, offering insights into their implications for organizing, the dilemmas inherent in decentralized governance, and the evolving potential of collaboration enabled by tokenized governance and blockchain technology.