{"id":6829,"date":"2026-01-19T10:39:58","date_gmt":"2026-01-19T10:39:58","guid":{"rendered":"https:\/\/dailystreetchronicle.com\/index.php\/2026\/01\/19\/ethereums-vitalik-buterin-says-daos-are-broken-proposes-major-redesign\/"},"modified":"2026-01-19T10:39:58","modified_gmt":"2026-01-19T10:39:58","slug":"ethereums-vitalik-buterin-says-daos-are-broken-proposes-major-redesign","status":"publish","type":"post","link":"https:\/\/dailystreetchronicle.com\/index.php\/2026\/01\/19\/ethereums-vitalik-buterin-says-daos-are-broken-proposes-major-redesign\/","title":{"rendered":"Ethereum\u2019s Vitalik Buterin Says DAOs Are Broken, Proposes Major Redesign"},"content":{"rendered":"

The post Ethereum\u2019s Vitalik Buterin Says DAOs Are Broken, Proposes Major Redesign<\/a> appeared first on Coinpedia Fintech News<\/a><\/p>\n

Ethereum founder Vitalik Buterin <\/a>stirred discussion across the crypto space today with a tweet on how DAOs didn\u2019t fail, but they lost focus. And that shift, he says, is now weakening some of crypto\u2019s most important systems.<\/p>\n

\u201cWe need more DAOs – but different and better DAOs,\u201d<\/em> Buterin wrote<\/a>, pointing back to Ethereum\u2019s early vision. DAOs were meant to manage resources and coordinate activity more efficiently than governments or corporations. Instead, most have turned into simple token-voting treasuries.<\/p>\n

That model works on paper, Buterin says, but it comes with serious flaws.<\/p>\n

Where Modern DAOs Went Wrong<\/h2>\n

According to Buterin, token-based governance is inefficient and easy to manipulate. Large holders can influence outcomes, and decision-making often turns political rather than practical.<\/p>\n

This has led many builders to lose confidence in DAO governance altogether.<\/p>\n

\u201cThe problem here is not greed. The problem is that we have bad oracle designs,\u201d<\/em> he said, arguing that flawed systems are holding DAOs back.<\/p>\n

Also Read: Vitalik Buterin Wants Ethereum to Survive Without Him, Reveals 7-Step Plan<\/a><\/strong><\/p>\n

Why Better DAOs Still Matter for Crypto<\/h2>\n

Despite the criticism, Buterin made it clear that DAOs remain essential.<\/p>\n

He pointed to several areas where stronger DAO designs are urgently needed: price oracles used by stablecoins and DeFi protocols, onchain dispute resolution for use cases like insurance, and maintaining trusted lists such as verified apps or contract addresses.<\/p>\n

DAOs also play a role in helping projects launch quickly and continue operating after original teams step away.<\/p>\n

Without better governance, these systems remain fragile.<\/p>\n

What’s Holding DAOs Back?<\/h2>\n

Buterin also highlighted two major issues behind low participation.<\/p>\n

\u201cWithout privacy, governance becomes a social game,\u201d <\/em>he warned. Public voting often changes behavior and discourages honest decision-making. At the same time, frequent votes lead to decision fatigue, causing users to disengage over time.<\/p>\n

To fix this, Buterin pointed to tools like zero-knowledge proofs for private governance, AI to reduce voting overload, and better communication platforms designed for consensus.<\/p>\n

Crypto Community Reacts<\/h2>\n

Reactions were mixed. A user pushed back<\/a>, asking whether Chainlink’s corporate-controlled DAO structure already solves some of these issues. <\/p>\n

Others aligned with Buterin’s view, agreeing that most protocols have stopped experimenting<\/a> with new oracle designs entirely.<\/p>\n

Whether the wider Ethereum ecosystem takes action remains uncertain. But Buterin’s message is clear: the current DAO model needs a rethink.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

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