Abstract
This chapter examines the key paradoxes inherent in Decentralized Autonomous Organizations (DAOs) and provides directions for future research using paradox theory as a lens. DAOs represent a novel form of organizing collective action enabled by blockchain technology, smart contracts, and cryptocurrencies. While promising greater decentralization and participation, DAOs face persistent tensions between contradictory yet interdependent elements. The chapter identifies and analyzes four main categories of paradoxes in DAOs: organizing, performing, learning, and belonging paradoxes. Organizing paradoxes involve the simultaneous presence of centralized and decentralized governance, as well as the interplay between human and machine agency. Performing paradoxes center on the ongoing tension between advancing communal, impact-driven goals and financial incentives, along with balancing radical openness and necessary organizational control. Learning paradoxes in DAOs emerge as these organizations struggle to adapt and innovate while maintaining connections to their foundational protocols and navigating integration or differentiation from existing institutions. Belonging paradoxes are rooted in the dual identities of DAO participants, who simultaneously enact community-oriented values and market-driven behaviors as both members and investors. By striking a balance between these opposing forces, DAOs aim to harness the benefits of decentralization while maintaining operational stability and scalability. The paradox lens offers valuable insights into the complex nature of DAOs and their governance challenges. This analysis contributes to our understanding of DAOs as a new organizational form and highlights areas for future research, including how DAOs can effectively manage these paradoxes to achieve their goals and sustain their operations over time.