A Layered Governance Coverage Model for Decentralized Autonomous Organizations: Formalization, Empirical Analysis, and Implications for Blockchain-Based IoT/AI Systems

Decentralized Autonomous Organizations (DAOs) enable blockchain-based collective governance, yet existing studies often evaluate DAO governance through isolated mechanisms, particularly voting systems. This narrow view does not sufficiently explain recurring problems such as governance capture, weak accountability, inadequate safeguards, and inefficient resource allocation. This paper proposes a Layered Governance Coverage Model that conceptualizes DAO governance as a system of seven interdependent institutional functions spanning participation, agenda formation, collective choice, safeguards, execution, incentives, and meta-governance.

The model uses a four-level strength scale to assess not only whether governance functions are present, but also how strongly they are institutionalized. It is empirically applied to thirty-seven active DAOs through evidence-based coding of publicly available governance artifacts. The results show that governance breadth does not necessarily imply governance maturity: collective choice and execution mechanisms are more developed than accountability, safeguards, and meta-governance.

Beyond DAO-native settings, the paper positions governance maturity as a trust and resilience regime for blockchain-based IoT and AI infrastructures, where governance affects security, reliability, data integrity, and risk oversight. The paper discusses AI-enabled governance analytics as a support mechanism for monitoring governance activity, detecting anomalies, and improving governance observability. The proposed framework contributes a structured approach for evaluating and designing resilient governance architectures in DAOs and blockchain-based IoT/AI systems.