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Vitalik Buterin Calls for DAO Redesign to Tackle Oracle Risk and Governance Drift

He urges a move away from token voting toward purpose-built governance for critical DeFi infrastructure.

Overview

  • Buterin says most DAOs have devolved into token‑holder treasuries that are inefficient and easy to capture, with outside reporting noting low participation and outsized influence by wealthy holders.
  • He argues token-based oracles cannot secure value beyond their market capitalization, highlighting vulnerabilities for stablecoins, prediction markets and other systems that also need credible dispute resolution.
  • His agenda prioritizes five use cases: robust oracles, on‑chain dispute resolution, shared allow‑lists of trusted resources, rapid short‑term funding, and long‑term project maintenance after founders exit.
  • A proposed convex‑versus‑concave framework guides design choices, favoring compromise for averaging problems and clear leadership with accountability for decisions that require decisive action.
  • To counter privacy deficits and decision fatigue, he recommends private participation using zero‑knowledge proofs with MPC or FHE where needed, cautious AI assistance rather than autonomous control, and stronger communication layers, with experts noting interest yet uneven technical maturity.