Ethereum founder Vitalik recently proposed a deep reflection on the existing DAO model. He believes that although the DAO concept is important, the current DAO designs generally have serious flaws.

At present, most DAOs adopt a model where token holders directly vote on decisions—seemingly democratic but fraught with problems. This mechanism is not only inefficient but also easily manipulated by large holders, ultimately becoming a tool for concentrated power, and it cannot fully address the inherent weaknesses in human political decision-making. For this reason, more and more people are beginning to feel disappointed with DAOs.

Vitalik pointed out that better-designed DAOs should take on substantive functions. For example, building more reliable oracle systems, establishing on-chain dispute resolution mechanisms, maintaining various blacklists and whitelists, rapidly launching new project ecosystems, and ensuring the long-term stable operation of projects. These are the true applications of DAOs.

In his analytical framework, he introduced a contrast model of "convexity" and "concavity" to evaluate different governance structures—providing a new perspective for assessing the strengths and weaknesses of DAO designs.