Ethereumfounder Vitalik released a new article today, “DAOs are not companies: Decentralization of autonomous organizations matters.”
Some current viewpoints believe that highly decentralized governance is inefficient, while the traditional corporate governance structure consisting of the board of directors, CEO, etc. has evolved over hundreds of years to make correct decisions and create value for shareholders.
Vitalik believes that this position is wrong in many cases. While in real life we may only need a handful of DAOs that look more like political science than corporate governance structures, these are the ones that really matter.
DAOs assume nation-state-like functions in applications, such as providing basic infrastructure, so features such as predictability, robustness, and neutrality are valued over efficiency.