DAOs are not corporations: where decentralization in autonomous organizations matters

-Decentralization for censorship resistance to avoid instability and disruption.

-Decentralization for making better decisions in environments where large amounts of diverse input goes into decision-making and the wisdom of the crowd gives better solutions.

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.

-Decentralization as credible fairness by distributing decision-making power among more people, so that each individual has less power, minimizing collusion and maximizing DAOs ability to oversee themselves.

In this thought piece, Vitalik challenges the question of whether decentralized decision making is effective by looking at three scenarios in which it is important and needed: