Ethereum co-founder Vitalik Buterin is calling for a rethink of how decentralized autonomous organizations are designed. In a recent post on X, he said many DAOs today function mainly as token-controlled treasuries, which fail to improve on traditional governance systems.
Buterin argued that token voting is often inefficient and easy to capture by powerful holders. Instead, he believes DAOs should focus on solving specific problems such as better oracles, onchain dispute resolution and long-term project stewardship.
He explained that different decisions require different governance styles. For issues where compromise matters, DAOs should gather input from many participants. For high-risk decisions, strong leadership may be more effective, with decentralization used to ensure accountability.
Buterin also highlighted challenges like decision fatigue and lack of privacy. Constant voting reduces engagement, while public voting turns governance into a social contest. He suggested tools like zero-knowledge proofs and limited use of AI to support decision-making without replacing humans.
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