DAO governance needs to be reconsidered, particularly with the challenges highlighted by recent events involving the lending protocol Compound. Currently, governance in many DAOs operates on a one-token-one-vote system, making them vulnerable to governance attacks by large token holders. A prime example is a whale known as Humpy, who leveraged their voting power to allocate significant funds within Compound's structure. Unlike traditional corporate governance structures that, like Meta’s dual-class share structure, provide checks against hostile takeovers, many DAOs lack similar safeguards. Experts suggest implementing measures like know-your-customer initiatives and incentivizing informed participation to enhance governance quality. The industry must also conduct threat modeling to prepare for malicious actors gaining influence. A call for DAOs to evolve their governance systems to reflect successful models like Meta's is unified among stakeholders, emphasizing a balance between decentralization and necessary controls for sustainability.

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