Social Impact Organisations (SIOs) face persistent challenges in governance and transparency, which impact public trust and operational efficiency. The emergence of Decentralized Autonomous Organizations (DAOs) offers a blockchain-based alternative to traditional governance structures, leveraging transparency, decentralization, smart contracts, and cryptographic security. This paper presents a comparative review of DAO adoption in SIOs, analyzing transparency mechanisms, governance models, adoption barriers, and their impact on the sector. Using a Narrative Literature Review (NLR) approach, the study synthesizes insights from nine selected papers out of 122, focusing on DAO-driven donation tracking, governance models, and regulatory constraints. The findings suggest that DAOs enhance transparency, accountability, and cybersecurity resilience through immutable records and tamper-proof decision-making processes. However, technical complexities, regulatory uncertainty, and financial sustainability remain significant challenges to adoption. Hybrid governance models, which balance decentralization with regulatory compliance, appear promising for overcoming these barriers. The review identifies five key research gaps: (i) empirical validation of DAO models, (ii) decentralized identity and inclusive governance, (iii) integration with AI and IoT, (iv) sustainable financial models, and (v) standardized legal frameworks. Addressing these gaps is crucial for advancing DAO adoption in SIOs, ensuring a scalable and legally compliant governance framework. This study contributes by providing a structured comparative analysis of DAO implementation in social impact initiatives, with emphasis on transparency, accountability, and cybersecurity implications.

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A Comparative Review of Decentralized Autonomous Organizations Adoption in Social Impact Organizations Focusing on Transparency, Governance Models, and Adoption Challenges

  • Roslan Abdul Wahab,
  • Ummul Hanan Mohamad,
  • Mohammad Nazir Ahmad

摘要

Social Impact Organisations (SIOs) face persistent challenges in governance and transparency, which impact public trust and operational efficiency. The emergence of Decentralized Autonomous Organizations (DAOs) offers a blockchain-based alternative to traditional governance structures, leveraging transparency, decentralization, smart contracts, and cryptographic security. This paper presents a comparative review of DAO adoption in SIOs, analyzing transparency mechanisms, governance models, adoption barriers, and their impact on the sector. Using a Narrative Literature Review (NLR) approach, the study synthesizes insights from nine selected papers out of 122, focusing on DAO-driven donation tracking, governance models, and regulatory constraints. The findings suggest that DAOs enhance transparency, accountability, and cybersecurity resilience through immutable records and tamper-proof decision-making processes. However, technical complexities, regulatory uncertainty, and financial sustainability remain significant challenges to adoption. Hybrid governance models, which balance decentralization with regulatory compliance, appear promising for overcoming these barriers. The review identifies five key research gaps: (i) empirical validation of DAO models, (ii) decentralized identity and inclusive governance, (iii) integration with AI and IoT, (iv) sustainable financial models, and (v) standardized legal frameworks. Addressing these gaps is crucial for advancing DAO adoption in SIOs, ensuring a scalable and legally compliant governance framework. This study contributes by providing a structured comparative analysis of DAO implementation in social impact initiatives, with emphasis on transparency, accountability, and cybersecurity implications.