Criticisms
DAOs are still logically centralized because they are reliant on software protocols. The question of how to upgrade the code – when and if necessary – is very often delegated to a set of experts who understand the techno-legal intricacies of the code, and therefore represent another point of centralization.
Further, when we look at this from a legal perspective, it is clear that a DAO is neither a corporation, nor any other type of existing legal personality. It doesn’t have a registered office and has no physical place of business or registration. There are no shareholders or managers. As a result, it cannot perform many of the tasks commonly attributed to it, like owning property or engaging in legally binding contracts.