Ethereum co- founder Vitalik Buterin has once again sparked discussion about Decentralised Autonomous Organizations (DAOs) by stressing the importance of going beyond token voting in the designs of these organisations. In a tweet, Buterin first discussed the problems with the existing models of DAOs and then suggested different solutions for crypto’s most significant issues.
The Drawbacks of Token Voting Based Governance
He maintained that the main focus should be on developing the most advanced oracle designs because token-based oracles can be easily manipulated by whales, and decentralized systems have only the limitation of human curation.
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New Frontiers in DAO Design
Buterin broke down areas in which DAOs can greatly benefit the world, such as on, chain dispute resolution, updating the lists of secure application and token voting contract addresses, and the facilitation of project funding and maintenance.
He came up with the idea of ‘convex vs concave’ problems, through which he figured out that DAOs have to be made in a way that they will be maximally robust and safe from capture in concave environments, while in convex situations, they should also be allowed to make super decisions.
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Building a Better DAO Stack
Vitalik Buterin, the Ethereum co-founder, emphasised the need for token voting and a total overhaul of the DAO stack to incorporate not only the layers of communication but also decentralised governance platforms, forums, and other related organisations. He sees multisig together with consensus-finding tools as the best combination rather than relying on quadratic funding or decision-making based on social media.
The crypto community, by recognising the flaws in the present models and daring to venture into different ideas, can unleash the real capabilities of DAOs and thus establish a stronger, more decentralised tomorrow.
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