The concept of DAOs is amazing, but their degree of decentralization remains controversial. Despite $21.4 billion worth of assets relying on these specifications in the Web3 world, most DAOs are actually only partially decentralized, according to Blockworks.
For example, Uniswap’s Unichain initiative has left many DAO representatives feeling excluded, while the Optimism DAO’s governance contract is not controlled by its token holders. Most DAOs’ treasuries or smart contracts are still controlled by a small number of trusted stakeholders through multi-signature wallets.
Tally founder Dennison Bertram said that although DAOs still have a long way to go in terms of decentralization, partial transparency is still better than complete opacity. Despite the many shortcomings of DAOs, the industry's commitment to the value of decentralization is still worth paying attention to.