The promise of DAOs lies in self-governance. With the appropriate tools and mechanics, contributors can onboard, coordinate, reward one another, rather than relying on one single point of failure. In absence of such infrastructure, decisions will continue to be made arbitrarily and consensus cannot scale across the network.

Use governance tools To enable DAO members to understand what it means to vote to reduce collateral/margin requirements or increase interest rates, several quantitative tools have emerged to visualize DAO risk (and possibly their protocols). Aave and Compound, for instance, hold billions of dollars in assets to backstop lending protocols. DAO treas... See more