Ethereum co-founder Vitalik Buterin has come out swinging in defense of Decentralized Autonomous Organizations (DAOs), arguing that in some circumstances they can be more efficient and fairer than a traditional corporate structure.
In theory DAOs are collectively owned and managed by their members and have no central leadership. All decisions relating to aspects such as the usage of treasury funds or protocol improvements are made via voting on proposals submitted to the community.
In the lengthy Sept.20 post on his website, Buterin outlined that critics often argue DAO governance is inefficient, that DAO idealists are naïve, and traditional corporate governance structures with boards and CEOs are the optimal methods for making key decisions.
DAOs are not corporations: where decentralization in autonomous organizations mattershttps://t.co/PDh9tIRXcm
— vitalik.eth (@VitalikButerin) September