In this episode, TokenBrice discusses the challenges and shortcomings of DAO governance. He emphasizes the concept of governance minimization, where automation and incentivization are preferred over relying on governance which can be twisted to serve individual or external needs for profit.
He talks about shortcomings of plutocratic DAOs but also shares his experience as a member of the GHO Liquidity Committee, raising concerns about the selection process for committee members or delegates - and the prevalence of conflicts of interest in DeFi DAO governance landscape with the rise of DAO politicians that aren’t much different to real world politicians.
On the bright side, he talks about transparency & the ability to track funds as significant improvements to governance in the real world - but stands firmly behind the idea of governance minimization. The episode concludes with the introductions of the DeFi Collective, a nonprofit association supporting growth and resilience of DeFi protocols.
Takeaways
Governance minimization & automation
Pitfalls & conflicts of interests in plutocracy & committees
Professionalization of governance
Conflicts of interest
DAOs bleeding money
Transparency and tracking of funds
The DeFi Collective helping DeFi protocols for free
Leaving GHO Committee blog post