The Implications of A Distributed Autonomous Organization On Political Campaign Finance Regulations
Federal Election Commission (FEC) regulations on the contributions received by political candidates and parties has faced scrutiny over many years due to the fact that certain donors need not disclose their identities. With the rise of “dark money," which refers to “political spending to influence the decision of a voter, where the donor is not disclosed and the source of money is unknown” [1], and the introduction of cryptocurrency and blockchain technology such as smart contracts to the political finance world–a new platform for bad actors to leverage emerges. This paper discusses how blockchain technologies such as distributed autonomous organizations (DAO) and smarts contracts can be leveraged to further cripple the credibility and integrity of the political process and create a wider avenue for foreign interference in political races as seen in the 2016 presidential elections. Four use cases in which smart contracts and a DAO can be used to extend the influence of bad actors and foreign interference in political campaign financing in ways that are anonymous and untraceable are examined.
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