He calls for new DAO designs that tackle core governance challenges and real-world infrastructure needs, not just treasury management.

Possible solutions include integrating privacy-preserving tools like zero-knowledge proofs and selectively using AI to support human judgment rather than fully automate governance.

A governance communication layer within DAOs is suggested, alongside privacy protections and a focus on reducing decision fatigue.

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Key governance challenges identified include token-based oracles prone to manipulation, the need for on-chain dispute resolution for complex contracts, and risks of fragmentation in trusted applications and verified addresses.

Proposed focus areas for next-gen DAOs include robust on-chain oracles for DeFi and prediction markets, on-chain dispute resolution, curated lists of secure applications and verified token addresses, and mechanisms for rapid fund pooling and long-term project maintenance.

Other priorities include anti-scam registries, sustainable funding vehicles, and governance designs that prevent central bottlenecks while enabling long-term stewardship.

Buterin proposes a convex/concave governance framework: use privacy-preserving, multi-source input for complex problems (concave), and stronger leadership with accountability for decisive actions (convex) where appropriate.

The discussion sits amid concerns about turnout and whale influence, with examples like Aave DAO and the Optimism Collective illustrating token-based governance scale.

Overall, the piece situates governance design, privacy, and infrastructure as central to the evolving DAO ecosystem.

Buterin stresses that governance and oracle work should be treated as core components, incorporating ZK and AI from the start to support decentralization and robustness across Ethereum and its ecosystem.

Vitalik Buterin argues that DAOs must be redesigned with decentralized structures that go beyond token-voting treasuries, addressing governance weaknesses and reducing capture by large holders.