In June 2022, VitaDAO, a decentralized collective addressing longevity research, successfully funded a $250,000 study on how the drug rapamycin (sirolimus) affects aging. This pivotal moment in decentralized science showcased how DAOs can reshape research1.
Decentralized autonomous organizations (DAOs) are governance systems using blockchain technology to change how scientific research is conducted, like a sort of crypto co-op. This area is bound by convention and tradition, and many welcome the shakeup. DAOs operate without traditional hierarchies; they rely on smart contracts to define rules and functions1. This approach brings a fresh perspective to funding, conducting, and sharing research, while offering chances to invest in it, as with Bitcoin, Ethereum, and other coins/tokens.
Even if you’re a crypto-skeptic, or barely crypto-curious, the possibilities are attractive if you’re a researcher.
DAOs are entering new territory for decentralized science, challenging conventional research paradigms, and bringing innovative crypto research funding methods.
DAO research is in the early stages, but DAOs’ potential applications span many industries, like healthcare and finance2. For scientific research, DAOs offer a unique blend of open-source protocols, community-driven decision-making, and transparent governance.
This new scientific collaboration model is attracting attention from researchers’ and institutions’ attention worldwide, as interest in blockchain continues rising, even among those opposed on premise (I’m guilty here!).
Takeaways
- DAOs aim to use blockchain to decentralize the governance of scientific research.
- Smart contracts define scientific DAOs’ rules and functions.
- DAOs can offer new funding mechanisms for research projects.
- Decentralized science disrupts (in a potentially good way) traditional research paradigms.
- DAOs may promote transparency and community involvement in scientific pursuits.
What are DAOs in scientific research?
DAOs in scientific research mark a new era in academic collaboration and open source research. They use blockchain technology to transform funding and knowledge-sharing within the scientific field.
Definition and core principles
Research DAOs are built on transparency, community governance, and open science. They employ token incentive models for fundraising and decision-making. This allows members to vote on project allocations. The number of DAOs has skyrocketed, from about 700 in May 2021 to around 6,000 by June 20223.
DeSci coins and DAOs: The relationship
DeSci coins are vital in research DAOs, acting as both fundraising tools and governance means. These tokens grant voting power, enabling members to influence decision-making. The value of crypto funds in DAO treasuries jumped from $400 million to $16 billion in 2021, showing increased interest3.
Key differences from traditional research organizations
DAOs differ from traditional research institutions in that they don’t have hierarchical structures and they promote open collaboration. They strive for full decentralization and autonomy, which aims to bring a democratic approach to scientific organization and collaboration.
DAOs document all transactions on a public blockchain so that their operations are transparent4.
Examples of successful science DAOs
Several science DAOs have made significant impacts:
- VitaDAO: Focuses on longevity research
- ValleyDAO: Addresses synthetic biology and climate change
- AthenaDAO: Dedicated to women’s health research
These DAOs have successfully funded projects, created IP-NFTs, and fostered engaged scientific communities. The rise of research DAOs mirrors a broader trend, with DAO interest holders increasing from 13,000 to 1.6 million in 20213.
The role of blockchain in scientific DAOs
Blockchain technology is at the core of scientific DAOs with its supposed collective action and trust aims, without singular authorities lording over them. Decentralized organizations in blockchain use distributed ledgers to coordinate research and seek transparency.
Smart contracts for automated governance
Scientific DAOs rely on smart contract science for automated governance. These self-executing contracts, written in code, so operations are transparent and trustless within the organization5. VitaDAO, for example, uses smart contracts to manage voting on research proposals and fund allocation.
Tokenization of research contributions
Scientific tokenization allows DAOs to fairly recognize and reward research contributions. Researchers receive tokens for their work, which can be used for voting or exchanged for other assets. ResearchCoin, for instance, incentivizes open science practices through this method.
Guaranteeing data integrity and transparency
Blockchain offers an immutable, decentralized ledger of all transactions and research outputs. This open system fosters trust and reduces bias in scientific processes. OriginTrail, a protocol for supply chain management, shows blockchain’s application in guaranteeing, or at least trying to guarantee, data integrity in research.
Integrating blockchain in scientific DAOs can enable token-based voting systems on research proposals and align members’ interests with organizational goals5. Despite challenges, such as voting power concentration – <1% of holders in major DAOs control 90% of voting power – there’s great potential for democratizing research6.
Funding mechanisms in science DAOs
Science DAOs have transformed research funding with groundbreaking methods. They utilize blockchain technology to open up new paths for backing scientific projects. This supports the spread of knowledge and ensures research is transparent.
Crowdfunding and token sales
DAOs employ crowdfunding and token sales to create research funds. This method became popular in 2021, especially in biotech-focused DAOs7. By selling crypto research tokens, DAOs gather funds for projects and engage a worldwide community of supporters.
Grant distribution through community voting
In science DAOs, members vote on project proposals using tokens. This democratizes grant distribution. It’s effective for areas often underfunded, like synthetic biology for climate change or women’s health7. The collective decision-making accelerates scientific progress by tapping into diverse expertise.
Incentivizing long-term research projects
DAOs motivate long-term research through continuous community involvement. This model tackles traditional funding model flaws, where scientists spend a significant portion of their time on grant applications8. DAOs can streamline funding, so researchers can concentrate on their work. This added focus could lead to advancements, especially in longevity research, where no drugs are approved to slow aging8.
Current science DAOs need more funding, but they represent a hopeful alternative to traditional funding models7. They promote teamwork across disciplines and emphasize research transparency.
Collaboration and knowledge sharing in DAOs
DAOs are transforming scientific collaboration by harnessing blockchain research. They create open, transparent platforms for knowledge exchange. This marks a new era of decentralized science, where researchers globally can contribute and gain from shared insights.
Open-source research protocols
DAOs champion transparency and inclusivity in scientific endeavors through open-source research protocols. This method enables anyone to participate, contribute, and profit from scientific projects, regardless of their location or background9. By making methodologies and results open to all, DAOs speed up scientific advancement and spur innovation across various disciplines.
Decentralized peer review processes
Traditional peer review systems are evolving with DAOs. Decentralized peer review processes involve community members providing feedback and quality checks throughout the research lifecycle. This method lessens information asymmetry and fraud risks, as all activities and rules are blockchain-verifiable9. Instead of one round of peer review, perhaps revisions, and then publication, an article can go through rounds of public critique and revision.
Cross-border scientific partnerships
DAOs enable global scientific collaboration by connecting skilled individuals worldwide. This decentralized model allows researchers from diverse backgrounds to share their expertise and ideas. It boosts development and fosters trust through transparency9. Cross-border partnerships in DAOs operate more swiftly, efficiently, and securely than traditional centralized organizations, thanks to automation and smart contracts9.
In scientific research, the collaborative nature of DAOs can democratize decision-making and tap into a global pool of research talent. DAOs, conceivable, can address complex and universal challenges like climate change and poverty. They can also promote artistic and cultural creations9.
Challenges for scientific DAOs
Scientific DAOs are transforming the way research funding and collaboration occur. However, they encounter unique hurdles. These range from regulatory obstacles to ensuring scientific integrity in a decentralized setting.
Regulatory and legal hurdles
DAOs’ rapid expansion of DAOs, with a 660% increase from 2019 to 2020, has moved faster than legal frameworks10, in the same way Bitcoin and decentralized finance has soared (and plummeted) largely free of regulation.
This rapid growth brings regulatory uncertainty for scientific DAOs. The legal frameworks and tax implications are still unclear, posing risks to DAO members and possibly slowing crypto research funding efforts11.
Balancing decentralization and scientific rigor
Scientific governance in DAOs has to get through the tension between decentralized decision-making and maintaining research quality.
DAOs manage substantial resources, so this balance is essential. In 2022, more than 1.6 million participants oversaw $16 billion across 13,000 DAOs10. Implementing effective peer review processes and quality control in a decentralized setting is a significant challenge.
Addressing conflicts of interest
DAOs’ token incentive models bring potential conflicts of interest. To avoid this, token ownership, voting power, and research integrity must be balanced. There are possible ethical dilemmas as DAOs work through complex environments, seeking to align diverse interests among members, beneficiaries, and external parties11.
Academic collaboration in DAOs can run up against social and cultural barriers. Overcoming resistance from traditional institutions and building trust in decentralized systems are ongoing challenges11. Despite these obstacles, prestigious institutions like Oxford, Harvard, and Stanford have gotten involved in DAO research, which suggests a growing interest in the model10.
DAOs’ future in scientific research
DAOs offer a great deal of promise in disrupting scientific research and publication conventions. They offer a new way of funding, conducting, and disseminating research. DAOs work toward open source research and distributed knowledge as new standards. Transparency, supposedly, is an ideal in research. Blockchain has always hinted at the promise of decentralization and transparency and, in this area, maybe it will achieve it.
Potential impact on traditional academic institutions
DAOs like VitaDAO, ValleyDAO, and AthenaDAO are disruptive, as they serve as pioneers in longevity, environmental sustainability, and women’s health1213. These DAOs let scientists collectively decide on funding projects, potentially even minting intellectual property as NFTs13.
Integration with emerging technologies
DAOs’ combination with AI and IoT is expanding the boundaries of scientific research. ImpactDAOs use Web3, smart contracts, and blockchain to regenerate systems and create positive externalities for ecosystems14.
For example, Regen Network has developed over 40 methodologies for ecological regeneration, highlighting the effectiveness of scientific tokenization in practical applications14.
Scaling DAOs for large-scale scientific endeavors
DAOs will evolve to become better at addressing complex, interdisciplinary challenges. DAO Maker, the largest on-chain funding platform, has more than 1.5 million users and has distributed over $600 million,12 and that scale suggests a lot more growth is coming.
Bloom Network’s presence in 16 local chapters across 11 countries with 30,000 people on the ground shows the global scope these organizations can achieve14. As DAOs progress, they may become a common alternative to traditional research funding and governance models, fostering open science and global collaboration.
