# DAOHaus Wen DAOs Win Brainstorm Session

###### tags:`ETHDenver`

## DAO Strengths

- Self-ownership leads to increased passion
- Flexibility and malleability for participants
- Skin-in-the-game
- Creative signal creation and propagation - ideas flow more freely
- Protections provided by smart contracts; reducing counter party risk
- Lower friction and barrier to entry
- Less coersive
- Rapid iteration on organizational and financial structure
- More autonony, self responsibility and less victimization
- Regulatory arbitrage
- Contracts can be enforced on chain
- Decentralization of decision making process
- Scale powerfully with network effects

## DAO Weaknesses

- Lower coersion can lead to less accountability and control of accountability
- No guaranteed accountability
- No rulebook, lack of established process and model
- Information asymmetry, contributors are often at a disadvantage in information compared to leadership
- Hard for DAOs to interoperate because of lack of shared process and structure
- No single person who is responsible or has the onus to take action
- Sybil attacks
- Shared creative vision can lead to a dilution of that vision
- Friction to achieve consensus
- Necessity to achieve consensus
- So many of these weaknesses are engineering problems that stem from the lack of rulebook, process and models
- DAOs often don't have a specific desired outcome or mission
- Lack of legitimate structure
- Distributed liability
- Contracts cannot be broken
- Hyperfinancialization of governance
- Operational maximalism or the "lore keeping problem"

## Corporation Strengths

- Coersive efficiency - you can be easily fired if you don't produce
- Formalized structures
- Well known organizational models, process and rulebooks
- Lots of capital and access to capital
- Explicit dictators - leadership is codified
- Rigid effective hierarchy
- The dominant human organizational technology
- B2B Corporations easily interoperate
- Clarity of expectations and requirements
- Clear and consistent rewards
- Ability to interoperate easily with current legal structures
- Limited liability
- Personhood
- Can breach contracts

## Corporation Weaknesses

- Legal and regulatory capture
- Highly coersive - you are often under constant threat of being fired
- Can have their contracts breached
- Monopolization; economies of scale lead to widening wealth gap
- Centralization of decision making process
- Rivalrous internal nature of corporations leads to undesired behavior
- Opacity in many ways
- Near-sighted and tunnel visioned on short term profits
- Always have to grow
- Soul crushing
- Concentrates benefits to fewer and fewer people and entities
- High employee turnover; low benefit to staying in place
- Complacent spirit; low innovation