Transforming a traditional company into a Decentralized Autonomous Organization – A Swiss Case

Abstract

Decentralized Autonomous Organizations (DAO) represent a paradigm shift in how people self-organize and make decisions. Advancements in digital platforms and information technologies enable it. The study highlights the relevance and growth of DAOs, their challenges in integrating into existing legal systems, and the opportunities they offer. There is a need for the explosive growth of blockchain-based DAOs to integrate with legal systems. A hybrid approach combining decentralized organization models such as DAOs with existing legal structures could solve this challenge. Accordingly, this thesis examines by developing a prototype using existing DAO software and gaining insights into its functionalities and applicability for transforming a Swiss limited company. The research strategy chosen for this research was Design Science Research (DSR), as it envisions the creation of an artefact to solve identified real-world problems. Through a literature review of secondary literature, the requirements for a prototype were derived, which were the basis for developing a prototype. Requirements elicitation, prototype development, and subsequent validation were conducted in two DSR cycles. The legal requirements were validated with an expert interview.