Proof of Humanity : ethnographic research of a “democratic” DAO

Abstract

The Proof of Humanity (PoH) project emerged in 2021, introducing the first Sybil-resistant registry of individuals on the Ethereum network, incentivizing human participation through the distribution of $UBI cryptocurrency tokens. The project founders introduced the PoH Decentralized Autonomous Organization (DAO), which laid the foundations for the emergence of what was presented as “the first democratically governed DAO” running on the Ethereum network. Despite garnering fame and recognition with over 17,000 registrants within two years, the PoH DAO encountered governance challenges that ultimately led to its decision to fork in November 2022, sparking this research inquiry. This ethnographic research aims to unveil the governance dynamics underlying the PoH DAO's crisis, employing theoretical frameworks from modern nation-state democracies and liberal democratic theory. By analyzing community interactions, interviews, and public documents, the research sought to understand why the governance system struggled to reconcile diverse interests, leading to polarization and eventual fork. The research findings indicate that a lack of robust democratic governance mechanisms exacerbated community divisions, highlighting the importance of inclusive governance frameworks in DAOs. These findings contribute to both the understanding of DAO governance and the broader discourse on democratic theory in decentralized systems. This report presents an updated version of the initial findings shared with the PoH DAO community in early 2023, incorporating received feedback.