According to Blockworks, decentralized autonomous organizations (DAOs) experienced a tumultuous 2023, grappling with hacks, lawsuits, and rage quits. As we enter 2024, several trends are emerging that could shape the future of DAOs and similar entities. One such trend is the separation of powers, with many DAOs adopting varied strategies to divide governance power, aiming to enhance efficiency and establish a robust system of checks and balances. For example, Optimism's DAO employs a bicameral system, with the Token House governed by the OP token and the Citizen House using identity-based governance to fund the retroactive public goods program.
Another trend is the introduction of rage quits, which allow dissatisfied DAO members to exit with a pro-rata share of the treasury as a form of minority protection. However, the early results of rage quits have been mixed, with some DAOs experiencing significant losses in their treasuries due to members exploiting the system.
Lastly, treasury squabbles have become more prevalent as DAO treasuries see their native tokens increase in price and competition for funding intensifies. Some members of the Optimism ecosystem have voiced concerns about venture capital-backed projects receiving public goods funding, while Arbitrum's $4.2 billion treasury has been the source of multiple funding controversies. As DAOs continue to evolve, these trends will likely play a significant role in shaping their future development.
