Vitalik Buterin calls for a new DAO design for onchain disputes and governance

Ethereum co-founder Vitalik Buterin has called for caller decentralized autonomous organizations (DAOs) designs, arguing that the assemblage needs much than token-voting treasuries if it wants to amended connected accepted firm and governmental structures. 

In a Monday X post, Buterin said that existent DAOs often magnitude to “a treasury controlled by token holder voting.”

That exemplary is wide copied but it is “inefficient, susceptible to seizure and fails utterly astatine the extremity of mitigating the weaknesses of quality politics,” helium said.

Buterin argued that DAOs should lick circumstantial infrastructure problems, starting with amended oracles, onchain quality solution and long‑term task stewardship.

He besides highlighted the request for DAOs for subjective disputes (such arsenic security outcomes), support shared lists similar anti‑scam registries and modular formats to rotation up short‑lived backing vehicles and support projects live aft halfway teams disappear.

Vitalik Buterin calls for caller designs of DAOs. Source: Vitalik Buterin

Related: Vitalik calls for a ‘garbage collection’ relation to halt Ethereum bloat

Concave vs. convex: antithetic DAOs for antithetic problems

​Buterin framed his reasoning utilizing his earlier “convex vs concave” governance lens. For “concave” problems, wherever compromise is “better than a coin flip,” DAOs should maximize robustness by aggregating input from galore sources.

For “convex” problems that necessitate decisive bets, helium said it was much due to let beardown enactment and dainty decentralization to clasp leaders to account, alternatively than a afloat replacement.

​To marque specified systems enactment successful practice, DAOs indispensable lick privateness issues and “decision fatigue,” Buterin said.

Without privacy, governance becomes a “social game,” and if participants are asked to ballot constantly, engagement falls disconnected aft an archetypal burst of enthusiasm. He pointed to zero‑knowledge proofs and, successful immoderate cases, unafraid multi‑party computation and afloat homomorphic encryption to unafraid privacy.

He besides suggested that artificial quality could assistance trim determination fatigue by supporting investigation oregon allowing users to delegate voting to locally controlled models, portion cautioning against DAOs being tally by AI.

Related: Why Ethereum’s ‘walkaway test’ and quantum readiness substance much than ever

Low turnout, whale seizure and the lawsuit for next‑gen DAOs 

Buterin’s station comes arsenic DAO ecosystems are growing but conflict with information and concentration. 

DAO tokens person a marketplace capitalization of astatine slightest $17.5 billion, according to CoinMarketCap.

While mature DAOs similar Aave DAO and the Optimism Collective person utilized onchain governance to negociate large decentralized concern (DeFi) protocols and money nationalist goods, Buterin argued that projects designing caller oracles oregon governance systems should dainty DAO plan and the surrounding connection furniture arsenic “50% of their job, not 10%,” if they privation Ethereum’s decentralized basal furniture to transportation done to the apps built connected top.

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