kaal:claim:4529715-015

The most significant risk of bad DAO governance is centralization, in which a small group holds a disproportionate share of power or influence and thereby undermines the decentralized nature of the organization.

Source quote, verbatim

centralization, where a small group of individuals or entities hold a disproportionate amount of power or influence within the DAO, which can undermine the decentralized nature of the organization.

From

Wulf A. Kaal, Josh Bykowski, Decentralized Autonomous Organizations (DAO) – A Market Meta Analysis (2023), Current state of DAOs, p. 17
https://ssrn.com/abstract=4529715 · source PDF

Cite as

Wulf A. Kaal, Josh Bykowski, Decentralized Autonomous Organizations (DAO) – A Market Meta Analysis (2023). SSRN: https://ssrn.com/abstract=4529715

Classification

failuresupport: arguedfailure: creeping-centralizationfamily: recentralization-driftdaodecentralizationgovernance-design

Related claims

extended_by kaal:claim:5254152-005 Poorly governed DAOs face significant risks of centralization, lack of transparency, and inefficiency, so effe...

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