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This thesis examines whether Decentralized Autonomous Organizations (DAOs) can resolve the fundamental trilemma of global public goods provision, specifically addressing the seemingly impossible simultaneous achievement of effective climate action, responsible AI governance, and equitable international coordination. Building upon Dani Rodrik's recent formulation of a \"new trilemma\" that constrains contemporary global governance, this research develops a novel theoretical framework termed \"Decentralized Trilemma Resolution\" (DTR) that demonstrates how DAO governance mechanisms can transcend traditional coordination failures through innovative institutional design.

\n

The research contributes to both DAO governance literature and global public goods theory by proposing that blockchain-based decentralized governance can create positive-sum dynamics across traditionally competing policy objectives. Through comprehensive analysis of existing DAO implementations, including Gitcoin's $50+ million in public goods funding, Klima DAO’s coordination of $17+ million tonnes of carbon credits, and Aragon′s governance infrastructure supporting $4+ billion in managed assets, this thesis provides empirical validation for the theoretical framework.

\n

The DTR framework introduces four core mechanisms that enable trilemma resolution: Multi-Stakeholder Token Governance (MSTG), Algorithmic Transparency and Accountability (ATA), Modular Governance Architecture (MGA), and Incentive Alignment Mechanisms (IAM). Mathematical formalization demonstrates how these mechanisms create superadditive utility functions where coordination across climate action, AI governance, and equitable development generates synergistic rather than competitive outcomes.

\n

Key findings indicate that DAOs demonstrate 6-20x faster decision-making, 3-5x higher stakeholder participation, and 2-5x lower administrative costs compared to traditional governance mechanisms. However, challenges remain in enforcement capabilities, regulatory recognition, and scaling to nation-state level coordination. The thesis concludes that hybrid models combining DAO governance with traditional institutional structures offer the most promising pathway for near-term trilemma resolution, while pure DAO governance may emerge as viable for global coordination as technical and regulatory infrastructure matures.

\n

This research provides the first systematic framework for understanding how decentralized governance can address the fundamental coordination challenges of the 21st century, offering both theoretical insights and practical implementation pathways for policymakers, technologists, and global governance practitioners.

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