Are DAOs Simply A Utopian Ideal?

To the uninitiated, DAOs may seem like a utopian concept. However, as with all things in the world, they are inevitably not perfect. It has its fair share of criticisms in balancing out their pros and cons.  

Unspoken Trust  

During the creation of DAOs, the founding group sets the general terms and conditions, as well as the goal(s) of the organisation. These are all in the smart contract and sets the future of the DAO. Hence, while DAOs are intended to be trustless as decisions are made democratically by the members, there is fundamental trust in the founders’ creation of the smart contract. 

Furthermore, there are 2 models of DAOs with regards to how they determine how many rights each member possesses. The first model is that all members have equal say in the decision-making process. That is irrespective of their amount of contribution to the organisation. Another model takes into account how much contribution each member makes, and grants them rights proportionately.