According to Kimbal Musk, a billionaire philanthropist and brother of fellow entrepreneur <a href="https://www.cryptoknowmics.com/news/dogecoin-spiked-15-as-elon-musk-says-spacex-will-soon-accept-it-for-merch-payments/" target="_blank" rel="noopener">Elon Musk</a>, most of these trustless institutions are controlled by a few founder members, who is now an active builder of decentralized autonomous organizations (DAOs). Musk, who last year founded the <a href="https://dao.biggreen.org/" target="_blank" rel="nofollow noopener">Big Green DAO</a>, a Web3 non-profit focusing on food justice, spoke at Consensus 2022 in Austin, Texas, and said his research indicated that most DAOs are not built to prevent the amassing of power by a few members, which he has worked to avoid.

https://twitter.com/kimbal/status/1535303504151068672

Along with the buzz surrounding non-fungible tokens (NFTs) and Web3, the DOA concept has experienced a surge in interest. These ostensibly leaderless organizations and online investment collectives, on the other hand, have been mockingly dubbed "group chats with a bank account."
<h2>Musk - DAOs Must Constantly Decentralize</h2>
Musk believes that DAOs must constantly decentralize to avoid power accumulation, which is why the contributors and nonprofit organizations that get to vote in the Big Green DOA have term restrictions, which means they must give up their seats at the table and be voted back in every quarter. Term limitations, on the other hand, aren't common in DAOs, according to Musk.
<blockquote><em>"I had to feel myself giving up control of this beautiful thing I had spent 1,000 hours working on, and I think everyone should go through this process," </em>Musk said.<em> "I think we started with six non-profits. I've watched them go through the process of giving up control."</em></blockquote>
Regarding a status update, Musk stated that ten new non-profits had been added to the program, with another 86 set to be added this quarter out of 400 submissions. Musk points out that traditional organizations spend 15% of their revenue on overhead before giving out a single penny when it comes to the openness of DAO-based generosity.

Kimbal Musk Says Most DAOs Are Not Actually Decentralized

Kimbal Musk is an active builder of decentralized autonomous organizations (DAOs). He spoke at Consensus 2022 in Austin, Texas.

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

Kimbal Musk Says Most DAOs Are Not Actually Decentralized

Top Picks