The Possibility of a DAO's Death


Well I’d really be happy to provide an answer to this question though it would be wise for us to go through the strength and weakness of a DAO, with that we’d be able to know if there would be a probability of a DAO’s death.


What is a DAO? A DAO is a Decentralized Autonomous Organization the word autonomous means a DAO is not owned by anyone and it’s Independent. Being independent means there’s equal footing, neither a CEO or hierarchy exists and power is distributed and not centralized. Decision making and taking isn’t just done, every member around the world contributes and participates in the making of decisions. When there’s a new proposal, it’s brought to the board and DAO members to be cross checked properly if the decision will bring growth to the DAO or cause a fall. This singular act creates unity and brings prosperity to a DAO.



Being democratized and decentralized, DAO members abide by the opinions and decisions of the majority. It may get rid of manipulation, but there is still a risk of conspiracy. Conspiracy causes a bad type of competition and creates division & wherever there’s no unity, its 99% possible that a fall is near.


Hacking of a DAO is a major issue in the Web 3.0 and the crypto world, a DAO may die as a result of a hack case if it’s treasury is hacked. It may be hacked due to vulnerabilities in its code base. More specifically, computer scientists were concerned that a bug in a DAO’s wallet would allow them to be drained & exploited. While programmers attempted to fix the bug, attackers may take the case as an opportunity and then exploit the vulnerability to begin siphoning funds from the DAO. A case study is Badger DAO which reported to have lost $119 million as a result of a front end hack process carried out by a hacker using Metamask wallet to make illicit fund request from users in the DAO and other partners.

DAO-DAO competition

DAO’s can moreover die as a result of competition with another DAO, with the volume of DAO’s rising and competing for educated attention and mastery, a few DAO’s may battle to remain lively. In spite of the fact that what dies in a DAO is collective vision and the vitality of a community in interest of this vision.This isn’t fundamentally negative since DAO’s exist to fulfill a reason. Sometimes, they as it were got to exist for a limited sum of time. Other times, DAO’s fall flat and pass on, however they can re-emerge in modern appearances for the same objectives.



Thanks for sharing your insights on what could make a DAO die/dead.

Pretty straightforward.

I especially concure with hacks being a top cause of DAO death. Another case study is The DAO - the first ever DAO on Ethereum - and how things ended when a hacker stole 28% of the crowdfunded funds.

That was a real bummer.

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Yes exactly, I do think that the hack is the main reason for DAO failure. Since money and resources are essential to the operation of a DAO, an imbalance results when they are misused or stolen.

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@Freakytainment Thanks :pray: for sharing this weaknesses of a DAO.
I think that another weakness DAOs face is problem of not having a Legal abilities or backup.
In the sense that, it’s highly decentralized, but it does not have a place or Location, it has no ground in the physical world :thinking: just like the non profit organisation, partnerships, limited liability and so on they share same similarities with.


@Freakytainment I love your work and what you have composed here but I would love to explore this topic;

What is a DAO:
A Decentralized Autonomous Organization (DAO) is a type of decentralized organization that is run by a set of smart contracts on a blockchain platform. It is designed to operate in a decentralized and autonomous manner, with the goal of allowing stakeholders to make decisions and allocate resources in a transparent and democratic way.

While DAOs are designed to be decentralized and autonomous, they can still “die” in the sense that they may no longer be able to function as intended or may no longer be active. This can happen for a number of reasons, such as the following:

  1. Lack of participation: If a DAO does not have sufficient participation from its members, it may be unable to make decisions or allocate resources effectively. This can lead to the DAO becoming inactive or ineffective.

  2. Loss of funds: If a DAO loses access to its funds or has insufficient funds to operate, it may be unable to continue functioning as intended. This can happen if the DAO is hacked or if its funds are improperly handled or misused.

  3. Changes in the underlying blockchain: If the blockchain platform on which a DAO is built experiences significant changes or upgrades, the DAO may need to be modified or updated in order to continue functioning as intended. If this is not done, the DAO may become inactive or ineffective.

  4. Legal challenges: DAOs may also face legal challenges that could impact their ability to operate. For example, if a DAO is deemed to be in violation of local laws or regulations, it may be shut down or restricted.

Overall, while DAOs are designed to be decentralized and autonomous, they are not immune to challenges and may “die” if they are unable to function effectively or meet their goals.

However I would like to emphasize that DAOs are a relatively new and experimental type of organization, and their long-term viability and success is still uncertain. While they have the potential to offer many benefits, such as increased transparency, decentralization, and democratization, they also face many challenges and risks. Some of the potential risks associated with DAOs include technical vulnerabilities, legal and regulatory uncertainties, and potential conflicts of interest among stakeholders.

It is important for those considering participating in a DAO or investing in a DAO-based project to carefully assess the risks and uncertainties involved and to do thorough research and due diligence. It is also important to keep in mind that the cryptocurrency and decentralized finance (DeFi) sectors are highly volatile and carry significant risks, and it is important to be aware of these risks when making investment decisions.


Thank you so much @Freakytainment for shedding light on the possibility of DAO’s death

I would like to add that the success or failure of a DAO will depend on the level of participation and support from its members, as well as the effectiveness of its governance structure and decision-making processes.

Yes, it is possible for a Decentralized Autonomous Organization (DAO) to “die” or become inactive if it does not have sufficient participation or support from its members. A DAO is a decentralized, member-owned and -operated organization that is run using smart contracts on a blockchain. The operations and decision-making processes of a DAO are typically governed by a set of rules or protocols that are encoded in the smart contracts.

In order for a DAO to function effectively, it is important for it to have a sufficient number of active members who are willing to contribute resources, such as funding and time, to the organization. If the number of active members drops below a certain threshold or if there is not enough funding or other resources to support the DAO’s operations, the DAO may become inactive or “die.”

Additionally, if the rules or protocols of a DAO are not being followed or if there is a lack of consensus among the members about how the DAO should be run, it is possible for the DAO to become dysfunctional or for conflicts to arise. In such cases, it may be necessary for the members of the DAO to come to an agreement about how to move forward, or for the DAO to be dissolved and its assets distributed among the members.

A DAO been a relatively new form of politically decentralized organisation where by a network of people coordinate through software code and automation to govern themselves towards a stated objective. Autonomy here reflects to an autonomy of process, building from the Ethereum blockchains smart contract function into a discrete living system.
DAOs are testing the possibilities of decentralized self governance and possess governance patterns which are expressed in distinct phases.
To think through the cultural and evolution of a DAO, there is existence of lifecycle of a DAO, from birth, life , procreation and death to resurrection.

Can a DAO really die?
DAOs can die, with the volume of DAOs emerging and competing for informed and educated attention and expertise, some DAOs may struggle to stay alive. Scholar Ellie Rennie ARGUES that participatory Blockchain machines die when enough people cease to participate. Zargham points out that just like “Zombie chains”, when a Blockchain protocol no longer has participants funding or maintaining it’s infrastructure, there can also be “Zombie DAOs”. What dies in a DAO is collective vision and the energy of a community in pursuit of this vision.
This is not necessarily negative. DAOs exist to fufil a purpose. Sometimes, they only need to exist for a finite amount of time. Other times, DAOs fail and die, yet they can also evolve and re-emerge in new manifestation for the same goals.
(Published by Kelsie Nasson, Alexia Maddox)