Recently, the Web3 community faced a serious blow when two major decentralized autonomous organizations (DAOs) — Solana's Jupiter and Yuga Labs' Apecoin — officially abandoned their governance structures.
Overview of the Situation
Both projects exited their governance, citing dysfunction and low participation. Yuga Labs CEO Greg Solano described the DAO processes as 'slow, noisy, and often unserious.'
Issues in Decentralized Governance
Critics argue that many DAOs have become more symbolic than functional. Issues like low voting participation and whale voting preferences raise questions about real decentralization.
Opportunities for DAO Evolution
Despite current setbacks, some experts argue that DAOs are not dying but transforming. New governance approaches, such as futarchy, and merging with traditional structures could lead to sustainable development.
The collapse of two major DAOs raises serious reflections on decentralized governance. Despite the challenges, some experts are confident that the evolution of governance models can lead to more sustainable and effective solutions in the future.
