Failure Modes and Attacks

DAOs fail from technical exploits, governance capture, and human apathy — not just bad code. Recognizing failure modes helps you vote wisely and design better systems.

Plutocracy is quieter but common — whales and VCs hold majority voting power at launch. Progressive decentralization promises future community control; track whether it actually happens.

Sub-10% turnout is normal, so decisions are made by a tiny minority. Delegation helps but concentrates power in professional voters. The social layer matters too: toxic forums, captured moderators, and information asymmetry between insiders and community. Governance is politics — technology does not remove conflict.