DAOs and the Future of Work

Rewiring the workplace

Everything from stock trading to customer service is being handed over to algorithms, but not all automation looks the way we expect. Some of the most ambitious experiments in machine-run organizations are Decentralized Autonomous Organizations (DAOs). The largest DAOs have been around for nearly a decade, manage billions of dollars worth of funds and are now recognised as companies in some jurisdictions.

At the heart of this system are smart contracts which are just automated programs that run when certain conditions are met. They’re a bit like automated digital vending machines: if you put in the right input (money, approval, data), they instantly perform the agreed-upon action without needing a manager or middleman. Ideally, this creates a standardized, transparent system. Entire business functions can be automated. But when we look at how these systems work, the most interesting part is the humans who work in these partially automated organizations. The fascinating part is what computers cannot do.

The limitations of DAOs reveal something fundamental about human intelligence, trust, and the messy, unpredictable nature of collaboration.

Automating administration

DAOs encode company rules and processes into code, automating administrative tasks like payments, record-keeping, and contract enforcement. But while they handle the paperwork, all decision-making still rests with humans, who vote on changes and governance.

By automating the ‘plumbing’ of management, DAOs aim to create a standardized, transparent system that frees people to focus on collaboration and problem-solving. Their track record is mixed, which is another reason they are so interesting: we can learn from both the successes and failures and novel attempts to structure work in novel ways.

Hard-coding the rules

DAOs run on blockchain technology, meaning their rules are coded directly into the system and can’t be easily changed or bypassed. Instead of relying on corporate policies or human oversight, DAOs enforce rules automatically through digital protocols. This transparency is intended to minimize bureaucracy and create a “trustless” system—where people can collaborate without needing to know or trust one another personally. In other words, the computer programs automate the processes where people normally try to cheat or break the rules.

But DAOs don’t replace people; they automate the structures people work within. While they reduce administrative overhead, success still depends on human communication, creativity, and shared purpose—especially in globally distributed teams operating across different time zones and tasks.

The more automated the system, the more vital human connection becomes. DAOs handle logistics, but real collaboration across time zones, cultures, and tasks still relies on trust, communication, and problem-solving which are fundamentally human capabilities.

The psychology of decentralization

The defining feature of DAOs—the “D” in the name—is decentralization. Decisions are made collectively, often through voting systems that replace traditional hierarchies.

When structured and managed well (and they aren’t always), this model aligns with Self-Determination Theory (SDT), which identifies autonomy, competence, and relatedness as key to motivation and well-being.

• Autonomy: DAOs give participants direct control over decisions that shape their work, allowing them to align their contributions with personal values and strengths.
• Competence: To be effective, members need a clear understanding of their roles and objectives; without this, autonomy can lead to confusion or decision paralysis.
• Relatedness: A shared sense of purpose and connection to the group builds trust, coordination, and collaboration, ensuring that decentralization doesn’t result in isolation.

Making these three factors work within any organization is a fundamentally human task. Structures support engagement, but decentralization only works when people build the trust, skills, and connections to sustain it.

Collaboration and coordination across borders

Global organizations that bring people together remotely expand the talent pool but require exceptional communication and coordination. Without shared offices or real-time schedules, teams rely on text-based platforms like Slack, Discord and messenger apps, making emotional intelligence and adaptability essential.

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Soft skills such as active listening, conflict resolution, accountability, and clear goal-setting become even more critical because machines cannot handle these tasks. Automation can track performance metrics, enforce deadlines, or distribute rewards, but it takes human judgment to define what good performance actually looks like. A smart contract or computer program can record votes, but it can’t resolve a disagreement. It can set rules, but it can’t inspire people to work toward shared goals.

At its core, effective collaboration across people and teams isn’t just about structure it’s about the human ability to interpret, adapt, and react to our social and physical environment.

The future of human work

As automation reshapes work, its success depends not just on efficiency but on designing systems that serve people, not sideline them. Productivity alone won’t sustain an organization—work must support psychological needs like autonomy, competence, and relatedness. Without this, even the most advanced systems fail to engage workers or create lasting value.

If people are designed out of the equation too much, companies risk becoming hollow simulations—technically functional but practically unusable. This is already common in the blockchain sector, where intricate, automated projects launch without clear purpose or relevance to people’s lives, interest or ambitions.

Humans have significant limitations compared with machines, and those limitations create enormous strengths in adapting to the world around us. Those limitations are rooted in millions of years of surviving in complex and ever-changing environments.

Our perceptual and cognitive constraints force focus, decisiveness, and adaptability under pressure. We prioritize based on social, emotional, and physical needs, enabling collaboration and connection in ways machines can’t replicate. Automation should enhance these abilities, not ignore them.

The most successful organizations won’t replace humans—they’ll design systems that work with them, enhancing focus, adaptability, and collaboration rather than ignoring the strengths embedded within our limitations.