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Vitalik Buterin Calls for a Redesign of DAOs With Privacy Tech and Cautious AI

He says most DAOs have drifted into token-run treasuries vulnerable to capture.

Overview

  • Introducing a convex-versus-concave framework, he argues some tasks suit averaged, compromise-driven processes while others demand clear leadership with decentralized accountability.
  • He warns token-based oracle systems are security-capped by their market value, making them unsuitable for safeguarding large assets in stablecoins and prediction markets.
  • He highlights five priorities for next‑generation DAOs: robust oracles, on-chain dispute resolution, shared safe lists, rapid short-term funding, and long-term maintenance after founding teams depart.
  • He urges private governance using zero-knowledge proofs, with multi-party computation or fully homomorphic encryption reserved for cases where ZK alone is insufficient.
  • He supports AI as a tool to reduce decision fatigue through assistance and summarization, rejects autonomous AI control of DAOs, and elevates communication layers as essential coordination infrastructure.