Decentralized autonomous organization in built environments: applications, potential and limitations

Abstract

The operations of built environment-related sectors are often run on centralized organizational structures. This centralized approach could lead to operational challenges that restrict efficiency, hinder transparency, and misalign with the community’s interests. The emergence of decentralized autonomous organization (DAO) presents a promising avenue for addressing these issues by leveraging blockchain technology and decentralized governance models. This paper presents a review of DAO, examining its existing applications, limitations, and potential use cases in the built environment. Seven categories of DAO applications in the built environment were identified and discussed. The study also explores DAO’s fundamentals, including its governance characteristics, operational mechanism, limitations and technical implementation, and corresponding challenges. Finally, this study highlights three potential areas in the built environment for future DAO use cases. This article serves as an essential reference for future academics, professionals, and policy regulators interested in learning more about the integrations of DAO in the built environment.