Ethereum founder Vitalik Buterin explained in a blog post why DAOs should not operate as a company.
There has been a lot of talk lately around the idea that highly decentralized autonomous organizations (DAOs) don’t work and that DAO governance should start to look more like traditional companies. Vitalik Buterin also argues that DAOs need to stay as they are in order to stay efficient, not function as companies.
Vitalik Buterin: DAOs Must Have Various Inputs
Ethereum co-founder Vitalik Buterin argues that decentralized autonomous organizations (DAOs) should not be like corporations.
Buterin rejects the argument that it is naive to assume that ideas of decentralization do not work in the real world. Relying on the wisdom of the community, he says that declining resolutions are better than incremental ones. This is why he argues that DAOs with various inputs make a lot of sense.
Stating that there are some problems for DAOs, Buterin stated that the main challenge for DAOs is sustainability. Such organizations need to continue to operate when the original team retires. DAOs also have to deal with unexpected uncertainty. According to Buterin, approaches inspired by company management are better for solving such problems.
Saying that DAOs should not work with the company structure, but some solutions are in the company structure, Buterin states that some DAOs should resemble structures from political science.
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