We need more DAOs - but different and better DAOs. The original drive to build Ethereum was heavily inspired by decentralized autonomous organizations: systems of code and rules that lived on decentralized networks that could manage resources and direct activity, more efficiently and more robustly than traditional governments and corporations could. Since then, the concept of DAOs has migrated to essentially referring to a treasury controlled by token holder voting - a design which "works", hence why it got copied so much, but a design which is inefficient, vulnerable to capture, and fails utterly at the goal of mitigating the weaknesses of human politics. As a result, many have become cynical about DAOs. But we need DAOs. * We need DAOs to create better oracles. Today, decentralized stablecoins, prediction markets, and other basic building blocks of defi are built on oracle designs that we are not satisfied with. If the oracle is token based, whales can manipulate the answer on a subjective issue and it becomes difficult to counteract them. Fundamentally, a token-based oracle cannot have a cost of attack higher than its market cap, which in turn means it cannot secure assets without extracting rent higher than the discount rate. And if the oracle uses human curation, then it's not very decentralized. The problem here is not greed. The problem is that we have bad oracle designs, we need better ones, and bootstrapping them is not just a technical problem but also a social problem. * We need DAOs for onchain dispute resolution, a necessary component of many types of more advanced smart contract use cases (eg. insurance). This is the same type of problem as price oracles, but even more subjective, and so even harder to get right. * We need DAOs to maintain lists. This includes: lists of applications known to be secure or not scams, lists of canonical interfaces, lists of token contract addresses, and much more. * We need DAOs to get projects off the ground quickly. If you have a group of people, who all want something done and are willing to contribute some funds (perhaps in exchange for benefits), then how do you manage this, especially if the task is too short-duration for legal entities to be worth it? * We need DAOs to do long-term project maintenance. If the original team of a project disappears, how can a community keep going, and how can new people coming in get the funding they need? One framework that I use to analyze this is "convex vs concave" from vitalik.eth.limo/general/202… . If the DAO is solving a concave problem, then it is in an environment where, if faced with two possible courses of action, a compromise is better than a coin flip. Hence, you want systems that maximize robustness by averaging (or rather, medianing) in input from many sources, and protect against capture and financial attacks. If the DAO is solving a convex problem, then you want the ability to make decisive choices and follow through on them. In this case, leaders can be good, and the job of the decentralized process should be to keep the leaders in check. For all of this to work, we need to solve two problems: privacy, and decision fatigue. Without privacy, governance becomes a social game (see vitalik.eth.limo/general/202… ). And if people have to make decisions every week, for the first month you see excited participation, but over time willingness to participate, and even to stay informed, declines. I see modern technology as opening the door to a renaissance here. Specifically: * ZK (and in some cases MPC/FHE, though these should be used only when ZK along cannot solve the problem) for privacy * AI to solve decision fatigue * Consensus-finding communication tools (like pol.is, but going further) AI must be used carefully: we must *not* put full-size deepseek (or worse, GPT 5.2) in charge of a DAO and call it a day. Rather, AI must be put in thoughtfully, as something that scales and enhances human intention and judgement, rather than replacing it. This could be done at DAO level (eg. see how deepfunding.org/ works), or at individual level (user-controlled local LLMs that vote on their behalf). It is important to think about the "DAO stack" as also including the communication layer, hence the need for forums and platforms specially designed for the purpose. A multisig plus well-designed consensus-finding tools can easily beat idealized collusion-resistant quadratic funding plus crypto twitter. But in all cases, we need new designs. Projects that need new oracles and want to build their own should see that as 50% of their job, not 10%. Projects working on new governance designs should build with ZK and AI in mind, and they should treat the communication layer as 50% of their job, not 10%. This is how we can ensure the decentralization and robustness of the Ethereum base layer also applies to the world that gets built on top.

Jan 19, 2026 · 7:03 AM UTC

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Replying to @VitalikButerin
study ownership coins, study Avici DAO 🏛️🫡 you mentioned futarchy in ethereum’s whitepaper as a concept, avici and ownership coins are futarchy in production. solves decision fatigue, treasury protection to execute like a silicon valley startup while having market oversight.
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Replying to @VitalikButerin
This is precisely why we built GenLayer's Intelligent Contracts. They enable truly autonomous DAOs that eliminate: > decision fatigue by evaluating proposals against the DAO's constitution automatically, > managing treasury based on real-time data, > and executing decisions without repetitive voting. And our Optimistic Democracy uses multiple diverse LLMs reaching consensus, AI enhancing governance frameworks you define, not replacing human judgment. So it addresses both your oracle problem (subjective onchain resolution) and convex execution needs (decisive action without voting delays).
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Replying to @VitalikButerin
Agreed. The challenge isn’t creating more DAOs, but designing ones that actually align incentives, accountability and long-term coordination.
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Replying to @VitalikButerin
We're bringing UltraDAOs. We're building better foundations that fix all the issues you mention. Foundations where collective logic is executable, where programs are guaranteed to meet specs, & where governance evolves from people's requirements. UltraDAOs:🧵 Decentralized systems that: 1. Process structured opinions and intent from all participants - not binary votes on pre-filtered proposals, but complete requirement specifications. What do you need the system to do? What behaviors must it reject? What constraints must hold? 2. Calculate consensus through logic, not just voting - the system finds what's logically consistent across all stated requirements. Not "what do most tokens vote for" but "what satisfies the intersection of expressed constraints." Conflicting requirements are instantly highlighted in the opinion map. 3. Automatically build features and contracts from agreed rules. Specify what the program must achieve, and it accurately creates the program with no translation step or devs interpreting intent. The specification is executable. 4. Evolve behavior through formally defined specifications - programs automatically adapt by giving just the new requirement for them to satisfy. Governance and execution can become the same thing. This foundation handles everything you're asking for.
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Replying to @VitalikButerin
"Without privacy, governance becomes a social game." 💯 DAOs are still early though. Privacy-first DAOs, ZK, FHE, private communication, social platforms, and AI only as support and not authority can unlock stronger oracles, dispute resolution, and long-term resilience.
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Replying to @VitalikButerin
This brings DAOs back to their original purpose: not treasuries with votes, but institutions designed for the shape of the problem they solve. The convex vs concave distinction matters more than most DAO debates admit. Some problems demand aggregation and robustness. Others demand decisiveness with accountability. Token voting treated everything as concave - and governance paid the price. Oracles, dispute resolution, registries, bootstrapping, long-term maintenance: these are coordination problems, not popularity contests. Without privacy, governance becomes a social game. Without help, participation collapses under decision fatigue. Purpose-built DAOs - with ZK for dignity, AI to scale judgment (not replace it), and communication treated as infrastructure - are how decentralization becomes durable again.
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Replying to @VitalikButerin
chainlink is a DAO the chainlink corporation's shareholder DAO controls the chainlink board of directors subDAO who control the executives subSubDAO who control the oracle what's wrong with this? if chainlink corp was onchain, would you consider this a solved problem?
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Replying to @VitalikButerin
Bonfires are built to handle decision fatigue and facilitate governance minimisation. By processing group activity across TG, forums, transcripts etc. into structured context, agents can immediately find disputes, convergence or collaboration. Bonfires are tribe tooling ⽕👥
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Replying to @VitalikButerin
more and better DAOs, ftw. check out my soundcloud, dao/daico software uploaded to ens dapps, > framework: majeurdao.eth.limo/ > application: daicowtf.eth.limo/ A fun template, is "ungovern". No voting. Funds stream to Ops wallet. Users can ragequit to refund.
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Replying to @VitalikButerin
Strong take & agreed, daos need to be fundamentally redesigned asap
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Replying to @VitalikButerin
I agree with this. It feels like protocols completely gave up on experimenting with new oracle designs. It’s partly because oracles need to be upgradable, and builders gave up on decentralized approaches to upgrades with the dismissal of DAOs. For Truemarkets, we wanted to address this so we built our own oracle, I’m not claiming it’s perfect, but we feel like it solves of the issues with the alternatives, and we’re still iterating on it.
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Replying to @VitalikButerin
Vitalik, with all due respect, we all agree. But the problem that keeps being ignored is legal. A bunch of people deciding to work on something together makes them all legally liable for everything each other does. Period. You can’t solve jail or bankruptcy with ZK.
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Replying to @VitalikButerin
The "decision fatigue" in DAOs ends when we stop voting on every variable and start using hardware-attested data. Biological signals provide the trustless oracle layer Ethereum needs. We're moving from "governed treasuries" to "Verified BioData RWAs." That is the vision of #MatrixAINetwork
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Replying to @VitalikButerin
@AragonProject still heavily focused on ensuring real DAOs succeed. Automation to reduce voter fatigue, modular governance to reduce the need for voters to vote on things that aren't pertinent to them, and privacy to ensure good decision making.
In 2026 @AragonProject still has a strong focus on making real DAOs succeed. Why? There is no defi without DAOs. Our 2026 roadmap includes: 1. Privacy, ensuring better decision making 2. Automation, decreasing voter fatigue 3. Making tokens valuable
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Replying to @VitalikButerin
I read it all but am too illiterate to comprehend but send it
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Replying to @VitalikButerin
Bittensor is the ultimate DAO. And some of its subnet are working on breakthrough AI enabling systems like distributed ZK Proofs (subnet 2), permissionless decentralized inference with dynamic AI model allocation plus self-sustaining tokenomics via automated buybacks (subnet 64)
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Replying to @VitalikButerin
how do you manage to perfectly turn every one of vitalik's ideas into reality? maybe it's the builder's spirit that's driving you @z0r0zzz
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Replying to @VitalikButerin
agreed there is a huge gap in understanding what DAOs actually are and the dynamics of being in one, so I think the EF ought to start with first principals and explain what a dao is and isnt like we are five to get on the same wavelength of understanding
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Replying to @VitalikButerin
gm ser I'm building @TemplFun so people can spawn dao-like unstoppable chats with @xmtp_ that has bultin governance-as-polls and it's not about token voting here is the evm protocol code: github.com/templ-fun/templ-e… the app already works but we are upgrading it to be even better!
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Replying to @VitalikButerin
This is exactly the problem Humanode DAO Vortex is designed around. Governance anchored to one human = one vote. Coordination happens through chambers, scoped mandates, and contribution-based reputation instead of everyone voting on everything all the time. DAO that can handle subjective decisions, long-term maintenance, and capture resistance without burning people out or handing power to whales. Vortex mockups show the direction: uniqueness-rooted voting, explicit proposal flow, and role-based decision surfaces. humanode-vortex-experimental… Governance as infrastructure, not a popularity contest.
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Replying to @VitalikButerin
BASED DAO #900 is live! Place your bid and join the DAO on @base 🔗nouns.build/dao/base/0x10a56…
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Replying to @VitalikButerin
human coordination interfacing with tech requires layers of separate propositions, half of which (on the communication side) aren’t yet accounted for privacy is one part of this
two pillars underpin human coordination, and society at large (broadly encompassing all human coordination): money and identity these were both centralised to state-as-arbiter. government prints the money and the passport this industry is an exploration of what can underpin the only second path for society as we pass escape velocity on techno-dystopic convergence
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Replying to @VitalikButerin
Is there any DAO infrastructure like Aragon (not individual DAOs) that are building with these two issues in mind right now?
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Replying to @VitalikButerin
I think the "it's 50% of their job" hits the nail. Building an actual DAO is about as difficult as building the tool/product the DAO was established to play a role in. The issue then becomes building two things side by side and that's freaking hard if you don't have deep pockets. My thinking goes into direction of identifying somewhat functional token models and recognizing them as a DAO if the social component is present. In this sense, Ethereum is a successful DAO - governed by far more than a its token via a variety of different stakeholders, while keeping the core incentive of contributing to the algorimic part of governance (consensus) to be based on a token stake. At PWN/OWN I think we made the mistake of building these side by side - while in an interconnected way (DAO being user of the protocol with intention to function as a credit union) - these were still apporached as two separate jobs, where in fact it was supposed to be just one.
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Replying to @VitalikButerin
DAOlympics: Let the games begin ⌐◨-◨
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Replying to @VitalikButerin
The #Sowellian paradigm of governance: thought, executed and led with unparalleled intellectual rigor by the visionary strategist @deanmachine of the @solana ecosystem’s @realmsdaos collective 🤓
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Replying to @VitalikButerin
How to avoid playing social game is a big challenge for all the DAOs … I vote for you so you should vote for me, in return. Anonymity may be a critical condition.
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Replying to @VitalikButerin
I know this is a cross ecosystem reference - but you should really try and connect with some of the deep dao thinkers and leaders on SOL like @deanmachine @Whalesfriend @takisoul and the @realmsdaos team. Lots of iteration, thinking and innovation happening there
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Replying to @VitalikButerin
If anyone else wants to check how pol.is works, I copied some of this post and its initial comments over to pol.is/8nbua9dtw4
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Replying to @VitalikButerin
octra coded
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Replying to @VitalikButerin
nothing you make will ever be more efficient than chaim and yitzhak shaking hands over a contract ever i believe in humanity and the human soul as the only form of trust
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Replying to @VitalikButerin
we need DAOs that operate like startups to redefine industries 👋
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@VitalikButerin's right: better DAOs need better primitives. Token voting treats every wallet equally. Reputation-weighted governance solves this, weight votes by onchain contribution history. zkps for privacy + reputation for credibility = governance that actually works. This is what we're building.
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Replying to @VitalikButerin
DAOs were always inevitably going to work out because they're the only way to build hyperstructures that can evolve over time. I genuinely believe all of these concerns will be addressed as it becomes easier to use ZK tech. Recently was surprised at a ZK coprocessors ease of use.
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Replying to @VitalikButerin
Maybe we don’t even need more oracles, study @omnipair But if you think we need better DAOs, def check what @MetaDAOProject is doing
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