Tarun Chitra provided an excellent description of when governance is needed within DAOs in his recent piece for a16z,

---------CONCLUSION DeFi's decentralized governance allows stakeholders to influence protocol development. Decentralized governance with DAOs can replace traditional firms' transaction costs, allowing crypto projects to welcome more diverse ideas and beliefs. To achieve these benefits, operational efficiency does not have to be sacrificed.... See more

Introduction Curve Wars highlight crypto governance. Metagovernance has far greater ramifications than the Curve Wars suggest. This article introduces metagovernance and its roots in the traditional world, as well as a specific metagovernance event with Fei-Index-Aave. I will conclude with implications and future considerations.