Prior to the invention of Bitcoin, there was a strong movement to create something called "honest money."
A compute algorithm can create honest money. However, one needs to avoid things such as the ability to change interest rates. The algorithm needs to avoid derivatives and leveraging ... this would include contrivances like interest on stable coins.
I am not sure if a DAO provides an answer to regulation. Blockchains can get captured. Justin Sun captured STEEM.
If you look at the witness list on HIVE, you will see that most of them are voting the same interest rate ... which shows that DAOs are subject to group think.
!BEER