Decentralized Autonomous Organizations (DAOs) have been heralded as the future of governance, unleashing a more egalitarian approach to decision-making. However, decentralization of leadership is not a panacea that immediately leads to better results. To truly get the most out of a decentralized organization, steps must be taken to regulate weighted voting and token marking. If it’s not carefully balanced, it can explode internally – and some of it has already happened.
DAOs provide a model for managing a business or corporation that distributes voting rights to all members. there Usually there is no central authorityOnly the collective will. While this seems fair in theory, the opposite can be true for some models of governance.