**3.2 Censorship**

DAOs solve the problem of censorship, a widely discussed issue in nowadays societies. DAOs are censorship resistant as they cannot be shut down by anyone and no one can be censored or expelled from the community. In the limit, even the DAOs' creators cannot plug off the DAO until community of governance token holders approve the shutdown through voting. Nobody can impose their will on a DAO or DAO members regardless of their position or authority. Once members activate the smart contract by meeting some conditions [10] that are predetermined, the transactions are registered in the blockchain without (or with little) human interference and the transaction is registered in the blockchain, being immutable.


#### **Table 2.**

*Summary of the problems that DAOs solve.*

### **3.3 Mismanagement**

Bureaucratic organizations and corporations often face mismanagement problems, in which top-down, hierarchical structures are led by managers that often put their selfish interests in front of the organizations' interests. DAOs avoid mismanagement in two ways. First, operations are autonomously carried by smart contracts without (or with little) human interference, being transparent, auditable and equitable. Second, the DAO operates without the need to have faith on influential individuals of the boardrooms of directors that centralize the decision-making. Instead, the DAO is controlled by the token holders, who can submit proposals for improvement or protocol changes, see each other proposals, and vote on those proposals, defining the future and the success of the organization. DAOs' smart contracts enable automated and decentralized decision-making, leading to reduce mismanagement risks.

### **3.4 Lack of transparency and accountability**

Lack of transparency and accountability are among the biggest issues of our times. From the government to the banking system to big tech corporations, increasing concerns emerge about how governments and corporations are run, how our data and money are being held and used for and, equally important, who is accountable. DAOs' transparency allows for the accountability of every member of the organization. Accountability and transparency are values infused in blockchain technology that are at the very heart of DAOs. Every activity translates into an immutable transaction registered in the blockchain, meaning that it cannot be erased or reversed. In the same fashion, proposals, votes and even voters' collusions are publicly available, ensuring that members are accountable for their actions.
