DAOs are not corporations: where decentralization in autonomous organizations matters

---------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. Incorpor... See more

Progressive decentralization is not enough - continuous decentralization is important. Because even in true DAOs, there will always be forces that tend towards centralization

This topic stirs great passion and while we all like the purity of decentralizing, sometimes "the perfect is the enemy of the good." There are excellent tools when you need incentives to be decentralized, and excellent tools when you can accept a more centralized approach. The answer for a well established DAO is likely to be different from a new o... See more

Vitalik argues that a truly decentralized DAO should look to political science for design inspiration. In the future, he predicts these first-order non-corporate organizations will end up supporting second-order organizations that use more leader-driven forms of governance.