Decision Rights Decentralization in De-Fi Platforms

Maxwell C. Burda; Maximilian P. M. P. Locca; Kalina Stefanova Staykova

Decision Rights Decentralization in De-Fi Platforms

Maxwell C. Burda, Maximilian P. M. P. Locca, Kalina Stefanova Staykova

Department of Digitalization

Warwick Business School. University of Warwick

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review

Abstract

The Ethereum blockchain is hosting the next generation of financial services platforms, which require novel governance approaches to organize and engage platform participants. In this paper, we explore how the choice of decentralized finance (DeFi) platforms to distribute decision rights to their participants in the form of tokens impacts the roles of these participants before and after platform launch. Relying on insights from seven of the largest DeFi platforms and utilizing a grounded theory approach. we find that the roles of all platform participants significantly change post-launch. Users become platform owners, third-party complementors contribute more actively to the platform’s success, and the initial platform owners give up ownership in exchange for a healthier platform ecosystem and ideological fulfillment. Based on our analysis, we seek to extend our understanding of governance on blockchain-based platforms by emphasizing the changing roles of platform participants over time and the distribution of power from owners to users.

Original language	English
Title of host publication	Proceedings of the 30th European Conference on Information Systems (ECIS)
Number of pages	15
Place of Publication	Atlanta, GA
Publisher	Association for Information Systems. AIS Electronic Library (AISeL)
Publication date	2022
Article number	145
Publication status	Published - 2022
Event	The 30th European Conference on Information Systems (ECIS) 2022: New Horizons in Digitally United Societies - Universitatea de Vest din Timișoara (UVT) / West University of Timişoara (WUT), Timisoara, Romania Duration: 19 Jun 2022 → 24 Jun 2022 Conference number: 30 https://ecis2022.eu/

Conference

Conference	The 30th European Conference on Information Systems (ECIS) 2022
Number	30
Location	Universitatea de Vest din Timișoara (UVT) / West University of Timişoara (WUT)
Country/Territory	Romania
City	Timisoara
Period	19/06/2022 → 24/06/2022
Internet address	https://ecis2022.eu/

Series	Proceedings of the European Conference on Information Systems
ISSN	0000-0034

Keywords

Blockchain governance
De-Fi platforms
Decision rights
Decentralization

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Cite this

Burda, M. C., Locca, M. P. M. P., & Staykova, K. S. (2022). Decision Rights Decentralization in De-Fi Platforms. In Proceedings of the 30th European Conference on Information Systems (ECIS) [145] Association for Information Systems. AIS Electronic Library (AISeL). Proceedings of the European Conference on Information Systems http://aisel.aisnet.org/cgi/viewcontent.cgi?article=1144&context=ecis2022_rp

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title = "Decision Rights Decentralization in De-Fi Platforms",

abstract = "The Ethereum blockchain is hosting the next generation of financial services platforms, which require novel governance approaches to organize and engage platform participants. In this paper, we explore how the choice of decentralized finance (DeFi) platforms to distribute decision rights to their participants in the form of tokens impacts the roles of these participants before and after platform launch. Relying on insights from seven of the largest DeFi platforms and utilizing a grounded theory approach. we find that the roles of all platform participants significantly change post-launch. Users become platform owners, third-party complementors contribute more actively to the platform{\textquoteright}s success, and the initial platform owners give up ownership in exchange for a healthier platform ecosystem and ideological fulfillment. Based on our analysis, we seek to extend our understanding of governance on blockchain-based platforms by emphasizing the changing roles of platform participants over time and the distribution of power from owners to users.",

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publisher = "Association for Information Systems. AIS Electronic Library (AISeL)",

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Burda, MC, Locca, MPMP & Staykova, KS 2022, Decision Rights Decentralization in De-Fi Platforms. in Proceedings of the 30th European Conference on Information Systems (ECIS)., 145, Association for Information Systems. AIS Electronic Library (AISeL), Atlanta, GA, Proceedings of the European Conference on Information Systems, The 30th European Conference on Information Systems (ECIS) 2022, Timisoara, Romania, 19/06/2022. <http://aisel.aisnet.org/cgi/viewcontent.cgi?article=1144&context=ecis2022_rp>

Decision Rights Decentralization in De-Fi Platforms. / Burda, Maxwell C.; Locca, Maximilian P. M. P.; Staykova, Kalina Stefanova.

Proceedings of the 30th European Conference on Information Systems (ECIS). Atlanta, GA : Association for Information Systems. AIS Electronic Library (AISeL), 2022. 145 (Proceedings of the European Conference on Information Systems).

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review

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