Vitalik: Crypto Needs Better DAOs, Not Just Token Votes
Vitalik Buterin urges the crypto industry to build better DAOs beyond token-based governance.
- Vitalik Buterin critiques current DAO models.
- Token-vote governance is seen as risky and inefficient.
- Calls for more secure, decentralized DAO structures.
Rethinking DAO Governance Models
Ethereum co-founder Vitalik Buterin has voiced fresh concerns about how decentralized autonomous organizations (DAOs) operate today. According to Buterin, the crypto industry must move beyond token-vote-controlled treasuries and build better DAOs that are more secure, efficient, and truly decentralized.
In his latest commentary, Buterin argued that many DAOs rely too heavily on simple token-based governance—where voting power is directly tied to the number of tokens held. While this model is easy to implement, it exposes DAOs to governance attacks and centralization risks.
The Problem With Token-Based Governance
Token-voting systems, though popular, have shown significant vulnerabilities. They can lead to plutocratic control, where a few wealthy holders dominate decisions. This undermines the decentralized nature of DAOs and creates opportunities for manipulation, vote-buying, or even governance takeovers.
Buterin emphasized that many of today’s DAOs are inefficient because they prioritize speed over long-term resilience. He called for deeper innovation in governance design—where mechanisms such as soulbound tokens, quadratic voting, or multi-layered structures could provide more balance and resistance to manipulation.
Building More Robust and Decentralized DAOs
To solve these issues, Buterin suggests building DAOs that are less dependent on token economics and more focused on real decentralization and community engagement. This could involve hybrid governance models, reputation systems, or the use of non-transferable identity markers to ensure fairer participation.
The message is clear: if the crypto space is to mature and scale securely, it needs better DAOs—ones that uphold the core principles of decentralization while minimizing systemic risks.
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