The post Vitalik Buterin Says Today’s DAOs Are Not Good Enough appeared on BitcoinEthereumNews.com.

Blockchain Vitalik Buterin wants the crypto world to stop treating DAOs as finished products and start seeing them as an unsolved design problem. In a recent post, the Vitalik Buterin argued that decentralized autonomous organizations have drifted far from the ambition that helped spark Ethereum in the first place. DAOs were meant to outperform traditional institutions at coordination and governance. Instead, many have settled into rigid voting machines that mirror the very systems they were supposed to replace. Key takeaways Vitalik Buterin says today’s DAOs have drifted away from their original purpose and need fundamental redesign. Token-based voting and current oracle systems create structural limits and governance fatigue. Privacy tools, selective AI use, and stronger communication layers are key to building better DAOs. From bold idea to blunt tool Buterin’s critique starts with how DAOs are commonly implemented today. Most rely on token-weighted voting to control treasuries and steer decisions. While functional, he believes this approach exposes the same weaknesses found in corporate boards and political systems: slow processes, power concentration, and disengaged participants. Over time, this has eroded confidence. Many contributors now see DAOs as bureaucratic rather than innovative, leading to skepticism about whether decentralized governance can truly scale. The deeper technical gap Rather than focusing only on governance mechanics, Buterin shifted attention to infrastructure problems that DAOs are expected to solve – but currently cannot. One example is oracles, which feed real-world data into blockchains. He warned that most oracle systems used today are structurally limited. Because token-based oracles can only be as secure as their market value, they struggle to protect large pools of capital without imposing heavy costs. This weakness, he argued, affects core DeFi building blocks like decentralized stablecoins and prediction markets, which still rest on fragile assumptions. What DAOs should actually be doing Buterin…

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Filed under: News - @ January 19, 2026 6:28 pm