Decentralized autonomous organizations need a rethink, Ethereum co-founder says

2026-01-19 14:45:48

Source: CryptoNewsNet Original Title: Decentralized autonomous organizations need a rethink, Ethereum co-founder says Original Link: Ethereum co-founder Vitalik Buterin is calling for an overhaul of decentralized autonomous organizations (DAOs), which are core to blockchain-based democratization of finance. He argues that most have strayed from their promise to shift financial power from banks to everyday token holders.

In a recent post, Buterin said that the dominant approach—DAOs governed by token-based voting—has become too easy to manipulate and fails to deliver on the promise of decentralized governance.

“The concept of DAOs has migrated to essentially referring to a treasury controlled by token holder voting - a design which ‘works’, hence why it got copied so much, but a design which is inefficient, vulnerable to capture, and fails utterly at the goal of mitigating the weaknesses of human politics,” Buterin wrote.

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