Ethereum's Vitalik Buterin Explains Why DAOs Are Not Supposed to Function as Corporations

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Ethereum’s Vitalik Buterin doesn’t want DAOs to function as corporations

, Ethereum co-founder Vitalik Buterin argues that decentralized autonomous organizations shouldn’t resemble corporations.

He rejects the argument that it is naive to assume that the ideas of decentralization do not work in the real world, which is why traditional corporate structures are supposed to be more efficient. Buterin argues that concave decisions, which are made by relying on the wisdom of the crowds, are better than convex ones. Hence, he argues that DAOs with diverse input “make a lot of sense.”However, there are still some issues. As Buterin points out, the main challenge for DAOs s to solve the so-called “succession problem.” Such organizations have to make sure that they will still function if the original group retires.

 

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