In the previous post we discussed how DAOs are in truth neither fully decentralized nor truly autonomous. They are not fully decentralized due to the reality that unilateral action and decision-making is often necessary to get things done. They are not truly autonomous because aspects of their operations fall outside the scope of enforceable governance.

Much ado has been made of decentralized autonomous organizations (DAOs). Broadly speaking, these projects inscribe their rules, rights and responsibilities to smart contracts which live indefinitely and immutably on the blockchain. Holders of the DAO’s corresponding crypto token may participate in votes which automatically invoke those contracts to execute functions and pass new legislation.