Vitalik Buterin Speaks on Decentralized Autonomous Organizations

• Vitalik Buterin has stepped up in support of decentralized autonomous organizations.
• One of the main challenges for DAOs is to solve the “succession problem.”
• Buterin added that the ecosystem would not survive without some non-corporate decentralized forms.

Ethereum co-founder Vitalik Buterin has stepped up in support of decentralized autonomous organizations (DAOs), stating it could be more efficient than traditional corporate structure.

Buterin shared a detailed article outlining that critics often argue that decentralized autonomous organizations shouldn’t function as corporations to remain efficient. He further added that concave decision, which is made by relying on the intel of the crowd, is better than convex ones. Hence, stating that DAOs with diverse input “make a lot of sense.”

However, DAOs have to deal with further unexpected uncertainty. One of the main challenges for DAOs is to solve the “succession problem.” Such organizations have to make sure that they will still function even if the original group retires.

Buterin further explained:

In these cases, DAO-like structures with large amounts of diverse input going into decision-making can make a lot of sense.

While concluding the report, Buterin added that the ecosystem would not survive without some non-corporate decentralized forms keeping the blockchain stable.

Earlier this week, Waves founder Sasha Ivanov also expressed his opinion on DAO. According to Ivanov, DAOs offer a model for managing a project or company that distributes voting rights across all members. There is usually no central authority involved, however, the opposite can be true for certain governance models.

According to Ivanov, the long-term goal of DAO is to be able to run businesses, organizations, and nations with a decentralized system. Various forms of personalized, blockchain-enforced IDs, as well as a voting structure based on merit, may be required to balance the equation.