Despite the clear success of The DAO so far, various people are concerned this concept will run into some trouble sooner or later. There is only so much technology can do, but unless people smarten up, the DAO will not be the unicorn a lot of investors assume it is.
Success of The DAO does not Negate Potential Risks
Over the past few weeks, the majority of news regarding The DAO has been regarding their successful crowdsale, which has surpassed US$100m already. This is quite a milestone for a concept that has no clear leader and has no physical form either. At the same time, a lot of people see the value of a decentralised autonomous organization, but are they overestimating its potential?
There are many reasons as to why The DAO could be dead in the water before the concept gains major traction in the real world. While every investor is invited to participate in the voting process, there will always be a significant number of members who have no intention of doing so. Moreover, there is a question as to whether or not the majority of enthusiasts can make rational and responsible decisions, rather than following a majority.