Aristotelian Rectificatory Justice and Blockchain Arbitration. About DAO, Tokens and Schelling Point

Abstract

Based on distributed ledger technology, a new type of arbitration courts has been emerging in the world for the last five years. Their task is to resolve disputes using blockchain and smart contracts. Did the creators of the idea of “distributed justice” really invent a new way to effectively and fairly resolve disputes in the 21st century? Blockchain arbitration involves resolving disputes using the theory of multi-person games, the concept of Schelling point, the idea of decentralized autonomous organizations (DAO), tokens and crowdsourcing. The article attempts to answer the question of whether arbitration decisions made on the basis of economic incentives can be considered to meet the criteria of Aristotelian rectificatory justice. The article is analytical in nature, addressing a topic that has only become relevant in the world a few years ago. The analysis uses theses from cryptoeconomics and game theory. The work initially outlines the problems. Due to the small number of experiences of digital arbitration in the world, the theses and hypotheses of the text, written from the perspective of theory and philosophy of law, require further in-depth analyses.