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Are Decentralized Autonomous Organizations (DAOs) suitable for allocating funds in international development aid projects? DAOs offer transparency, immutability, and community-driven decision-making, potentially reducing corruption and bureaucratic inefficiencies common in traditional aid distribution. Smart contracts can ensure funds are released only when predefined conditions are met, enhancing accountability. However, challenges include limited technical literacy in developing regions, volatile cryptocurrency markets, and regulatory uncertainties. DAOs may exclude non-digital participants, risking inequity. While DAOs could revolutionize aid allocation by empowering local stakeholders and streamlining processes, their effectiveness depends on bridging the digital divide, ensuring stable governance, and aligning with local needs. Pilot projects and hybrid models integrating DAOs with traditional systems could test their viability for sustainable development aid.
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