crowds are bad at long-term strategic planning
- Basically all active, working DAOs (Yearn, DXdao, Sushi, MetaCartel Ventures, the LAO, Maker) operate with a formal or informal leadership crew: the small group of people who pass most of the proposals, lead the meetings, etc. The people who all the members would point to as leaders.
- In some (Yearn, Sushi), the DAO is actually 100% controlled by a small group of multi-sig signers, who also do most of the planning and decision-making.
- I believe a major reason for this is because we don't have the tools to let crowds make anywhere close to as good strategic plan as small groups, and everyone knows that, leading them to depend on a minority of leaders.
crowds are good at identifying problems, not proposing solutions
- Most DAOs depend disproportionately on a minority of trusted experts to guide them in any given area: engineers are deferred to in finding engineering solutions, lawyers in understanding liability, etc. Most people don't know how to evaluate most proposals properly, so they don't know how to vote.
- Browse any DAO's governance forums, and you will find a majority of comments are complaints or vague ideas / recommendations / comments.
- Similarly to problem 2, this is a problem that pushes DAOs towards the multi-sig solution. It also pushes DAOs towards vote delegation.