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Are DAOs overhyped and unworkable? Lessons from the front lines

Published 09/13/2023, 09:30 AM
Updated 09/13/2023, 09:40 AM
Are DAOs overhyped and unworkable? Lessons from the front lines

Ask 10 different people to define a decentralized autonomous organization (DAO), and youll likely get 10 different definitions. But there is at least one thing most agree on: DAO governance is a mess. At best, its an experiment in the works.

According to DeepDAO, DAOs today handle a whopping $17.2 billion in value. Yet many DAOs managing millions of dollars have proven hopeless at heeding even the most basic of lessons in business management 101. One does not have to look too far in the annals of crypto history to recall major DAO catastrophes.

A governance proposal on Mango Markets. (Twitter)
A snapshot of Gitcoin delegates using Karma. (Gitcoin)
StableLabs DAOmeter dashboard assesses DAOs on organizational maturity across various factors. (DAOmeter)
Read also
Features
Features
The multi-divisional structure of the modern firm. (SlidePlayer)
Optimisms dual governance house structure. (Optimism blog)

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