The DAO Dilemma

DAOs are at a critical juncture, with a small minority of members holding most of the power. The analysis covers 581 DAO projects and 16,246 proposals over five years on the Snapshot platform, and it found low voter turnout and token-weighted voting that lets a few whales sway decisions. Most DAOs use self-issued tokens rather than established cryptocurrencies like USDT or ETH. The lack of IPFS upgrades is flagged as a risk of data loss and rising storage costs. Proposed fixes include quadratic voting, infrastructure upgrades, participation incentives, and more stable governance tokens.