DAO tokens make no sense because the governance process is a smoke screen

I have analyzed almost all decent projects (mid-cap to high-cap alts) with its token that function as DAO. The name DAO is basically decentralized autonomous organization but I can assure you that none of them work as intended. Here’s why

Most web3 projects, as we know, are controlled by the same usual suspects, the big VCs that also control the money-printing of stablecoins and the top exchanges. So think about it. If they always control over 50% of the web3 projects (and they always do since they get in at pre-seed stage), what’s even the point of participating in governance? Imagine in real life election where some big company can keep voting million of times for one presidential candidate while average joe like you and me can only vote once, people will be outraged. and yet in crypto DAO processes, this is just something normal.

View Source

5 thoughts on “DAO tokens make no sense because the governance process is a smoke screen”

  1. DAOs are an ideal not a fact. They are not generally very decentralized for the reasons you point out and They are never really autonomous.

    I’m still pro dao. I think they are a proper vehicle for removing liability. On a long enough timeline they will become more Democratic or they will fail. Who would seek to own a governance token of a project that constantly moves against the interests of the community?


Leave a Comment