Kimbal Musk Says Most DAOs Are Not Actually Decentralized

According to Kimbal Musk, a billionaire philanthropist and brother of fellow entrepreneur Elon Musk, most of these trustless institutions are controlled by a few founder members, who is now an active builder of decentralized autonomous organizations (DAOs). Musk, who last year founded the Big Green DAO, a Web3 non-profit focusing on food justice, spoke at Consensus 2022 in Austin, Texas, and said his research indicated that most DAOs are not built to prevent the amassing of power by a few members, which he has worked to avoid. Taking stage @CoinDesk #Consensus2022 with @RodBeckstrom Excited to talk about @BigGreen DAO pic.twitter.com/Kf7apqlWih — 𝙺𝚒𝚖𝚋𝚊𝚕 𝙼𝚞𝚜𝚔 🤠 (@kimbal) June 10, 2022 Along with the buzz surrounding non-fungible tokens (NFTs) and Web3, the DOA concept has experienced a surge in interest. These ostensibly leaderless organizations and online investment collectives, on the other hand, have been mockingly dubbed “group chats with a bank account.” Musk – DAOs Must Constantly Decentralize Musk believes that DAOs must constantly decentralize to avoid power accumulation, which is why the contributors and nonprofit organizations that get to vote in the Big Green DOA have term restrictions, which means they must give up their seats at the table and be voted back in every quarter. Term limitations, on the other hand, aren’t common in DAOs, according to Musk. “I had to feel myself giving up control of this beaut...