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by javert 1674 days ago
It's not amazing. Like any company (a DAO is just a company), it could be run well, by good people, or run badly, by bad people. Whichever ways it turns out will not prove anything about DAOs.
1 comments

A DAO is more like a specific corporate governance mechanism than a company. For example, ConstitutionDAO will be a non-profit, with a non-profit board etc. I presume they will put things up for vote using the DAO.

If it is executed flawlessly it will prove DAOs as a viable corporate governance mechanism. If it fails or struggles, there will be learnings.

> For example, ConstitutionDAO will be a non-profit, with a non-profit board etc.

Ok but you can just form a 501(c)(3) whenever you want right, which actually has some force of law over its activities.

> I presume they will put things up for vote using the DAO.

But... they don't have to.

It's all fun and games until there's a disagreement over what to do. The way in which a meaningful disagreement is resolved is what will prove the viability of this model. When everyone's aligned already, it doesn't really prove much.

Except owners of the governance tokens have zero legal authority.

Traditional shareholders have actual legal voting power. Nothing is stopping this group from ignoring governance token votes.

Corporate governance by voting has already been proven to be viable. That's how publicly traded companies work.

A DAO is not special. It's just an unregulated international corporation.