Ethereum co-founder Vitalik Buterin has called for a rethink of decentralized autonomous organization (DAO) design, arguing that most DAOs remain stuck in a shallowEthereum co-founder Vitalik Buterin has called for a rethink of decentralized autonomous organization (DAO) design, arguing that most DAOs remain stuck in a shallow

Vitalik Buterin Pushes New DAO Models for Courts, Oracles, Governance

4 min read
  • Vitalik stated that most DAOS resemble token voting treasuries and don’t do much in terms of preventing capture or inefficiency.
  • His hope for DAOs is to use the technology behind oracle services, on-chain courts, scam lists, and stewardship.
  • The addition of privacy tools and AI-based delegation can increase voters’ turnout, and yet the DAO governance framework requires a better design.

Ethereum co-founder Vitalik Buterin has called for a rethink of decentralized autonomous organization (DAO) design, arguing that most DAOs remain stuck in a shallow model that fails to fix the weaknesses of politics and corporate governance. In a Monday post on X, Buterin said today’s DAO blueprint often amounts to “a treasury controlled by token holder voting,” and the sector needs to move beyond that default.

Buterin warned that the standard treasury-and-token-vote structure has spread widely because it is simple to deploy. However, he said it delivers weak outcomes. It breeds inefficient decision-making, is liable to governance capture, and fails to deliver improved fairness or accountability. His perspective is that DAOs must migrate towards governance infrastructure rather than mere tokenized treasuries.

DAOs should power core infrastructure, not just treasuries

Buterin outlined a broader vision in which DAOs take responsibility for infrastructure that requires collective coordination and credible neutrality. He highlighted three major targets: better oracles, on-chain dispute resolution, and long-term project stewardship.

Oracles often decide what “truth” enters a blockchain system, which makes them central to DeFi, insurance, and settlement. On the other hand, the matter of dispute resolution is relevant whenever there is a need for subjective assessment in those agreements that happen on-chain, for instance, in insurance disputes, fraud cases, or in matters of the delivery of services. According to Buterin, DAOs can solve these challenges by proper design in their governance instead of relying solely on token votes for legitimacy.

He also pointed to governance use cases that demand continuous curation. DAOs could maintain shared lists such as anti-scam registries, build common formats for short-term funding vehicles, and preserve protocols after their original teams disappear. These functions matter for crypto’s long-term resilience, especially as many projects lose contributors after early hype cycles fade.

“Concave vs convex” governance offers a design framework

Buterin framed his argument around his earlier “convex vs concave” governance lens. He said different types of problems require different kinds of governance.

For concave problems, compromise is better than a coin flip. These decisions benefit from wide input, diverse views, and high robustness. In this case, DAOs should focus on aggregation mechanisms that pull signals from many participants while resisting manipulation.

For convex problems, a decisive bet can outperform slow consensus. Buterin said DAOs should allow strong leadership in these cases. Rather than attempting to supplant leadership through decentralization, DAOs can utilize the concept of decentralization to make leaders accountable.

This approach has implications because, in it, one-size-fits-all governance does not work. Buterin wants developers to consider the architecture of governance as something serious in the area of engineering.

Privacy and decision fatigue block DAO performance

Buterin also warned that DAOs will fail unless they solve two structural issues: privacy and participation fatigue.

Without privacy, governance turns into a social game. Participants vote based on status, influence, and pressure rather than honest preferences. Buterin pointed to zero-knowledge proofs as a core tool to protect voter privacy. He also mentioned secure multi-party computation and fully homomorphic encryption as possible approaches in some cases.

Decision fatigue creates another major failure mode. If DAOs require constant voting, turnout collapses after early enthusiasm. Buterin suggested that AI could help reduce fatigue by supporting analysis or enabling delegation to locally controlled models. However, he cautioned against allowing AI to run DAOs directly.

Next-gen DAOs must address whale capture

Buterin’s comments land as DAO ecosystems expand while still struggling with low turnout and token concentration. DAO tokens now hold a market capitalization of at least $17.5 billion, but many governance systems still rely on a narrow set of active voters.

Buterin argued that teams building new governance systems should treat DAO design and the communication layer around it as “50% of their job, not 10%,” especially if Ethereum’s decentralized base layer is meant to carry into the applications built above it.

Highlighted Crypto News:

Canaan Risks Nasdaq Delisting as Shares Slip Below $1 Again

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

BetFury is at SBC Summit Lisbon 2025: Affiliate Growth in Focus

BetFury is at SBC Summit Lisbon 2025: Affiliate Growth in Focus

The post BetFury is at SBC Summit Lisbon 2025: Affiliate Growth in Focus appeared on BitcoinEthereumNews.com. Press Releases are sponsored content and not a part of Finbold’s editorial content. For a full disclaimer, please . Crypto assets/products can be highly risky. Never invest unless you’re prepared to lose all the money you invest. Curacao, Curacao, September 17th, 2025, Chainwire BetFury steps onto the stage of SBC Summit Lisbon 2025 — one of the key gatherings in the iGaming calendar. From 16 to 18 September, the platform showcases its brand strength, deepens affiliate connections, and outlines its plans for global expansion. BetFury continues to play a role in the evolving crypto and iGaming partnership landscape. BetFury’s Participation at SBC Summit The SBC Summit gathers over 25,000 delegates, including 6,000+ affiliates — the largest concentration of affiliate professionals in iGaming. For BetFury, this isn’t just visibility, it’s a strategic chance to present its Affiliate Program to the right audience. Face-to-face meetings, dedicated networking zones, and affiliate-focused sessions make Lisbon the ideal ground to build new partnerships and strengthen existing ones. BetFury Meets Affiliate Leaders at its Massive Stand BetFury arrives at the summit with a massive stand placed right in the center of the Affiliate zone. Designed as a true meeting hub, the stand combines large LED screens, a sleek interior, and the best coffee at the event — but its core mission goes far beyond style. Here, BetFury’s team welcomes partners and affiliates to discuss tailored collaborations, explore growth opportunities across multiple GEOs, and expand its global Affiliate Program. To make the experience even more engaging, the stand also hosts: Affiliate Lottery — a branded drum filled with exclusive offers and personalized deals for affiliates. Merch Kits — premium giveaways to boost brand recognition and leave visitors with a lasting conference memory. Besides, at SBC Summit Lisbon, attendees have a chance to meet the BetFury team along…
Share
BitcoinEthereumNews2025/09/18 01:20
MAXI DOGE Holders Diversify into $GGs for Fast-Growth 2025 Crypto Presale Opportunities

MAXI DOGE Holders Diversify into $GGs for Fast-Growth 2025 Crypto Presale Opportunities

Presale crypto tokens have become some of the most active areas in Web3, offering early access to projects that blend culture, finance, and technology. Investors are constantly searching for the best crypto presale to buy right now, comparing new token presales across different niches. MAXI DOGE has gained attention for its meme-driven energy, but early [...] The post MAXI DOGE Holders Diversify into $GGs for Fast-Growth 2025 Crypto Presale Opportunities appeared first on Blockonomi.
Share
Blockonomi2025/09/18 00:00
Tether Advances Gold Strategy With $150 Million Stake in Gold.com

Tether Advances Gold Strategy With $150 Million Stake in Gold.com

TLDR Tether buys $150M Gold.com stake to expand digital gold infrastructure Partnership links physical gold supply with blockchain settlement rails XAUT token distribution
Share
Coincentral2026/02/06 10:09