# kaal:claim:3799320-001

**Claim.** The concept of a DAO fails if it becomes centralized, and centralization in governance is the largest single threat to a DAO.

**Type.** failure  **Support.** argued

**Source quote.**

> The concept of a DAO fails if it becomes centralized. Centralization is omnipresent in computing systems, economics, and society at large. Yet centralization in governance is perhaps the largest threat to a DAO.

**From.** Wulf A. Kaal, *A Decentralized Autonomous Organization (DAO) of DAOs* (2021), Introduction, page 3

**Cite as.** Wulf A. Kaal, A Decentralized Autonomous Organization (DAO) of DAOs (2021). SSRN: https://ssrn.com/abstract=3799320

**Verify.** sha256 of source PDF `c3dff852f2d3f04718c829a24189309a7db4d92d84f6045d3d4f562d87c03e63` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20A%20Decentralized%20Autonomous%20Organization%20%28DAO%29%20of%20DAOs.pdf

**Failure mode.** Governance centralization  (family: recentralization-drift)

**Topics.** decentralization, dao, governance-design

**Keywords.** centralization, dao-failure, governance, decentralization

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/4067783-002

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.