Cybernetic organizations — BORGs — are doomed to fail
What makes a decentralized autonomous organization (DAO) a DAO? In practice, the democratic structure of these organizations has been compromised because a number of self-purporting DAOs are operating like traditional corporations.
With this in mind, developers at Delphi Labs proposed an alternative framework, incorporating so-called BORGs (Cybernetic Organizations) into governance structures to automate decision-making so that action could be taken without a DAO proposal. In effect, a BORG would be an artificially intelligent bureaucrat, implementing law through code.
However, the project of democratization should not be abandoned yet. DAOs should put in the work to engage their community in governance from the start.
As BORG proponents admit, “BORGs are not intended to be fully transparent, fully decentralized or fully autonomous.”
So, how can these entities coexist with DAOs? By design, BORGs further cement the vision of founding core teams who establish these entities, then shield their interests from criticism under the guise of trust-minimized, programmable governance. Where this technology is adopted, projects are bound to siphon decision-making into BORGs for the sake of convenience, falling into a democratic deficit.
Related: OpenAI needs a DAO to manage ChatGPT
It is worth noting that Delphi Labs argues in favor of BORGs under the premise that DAOs cannot function as they were envisioned. DAOs require significant levels of coordination and engagement. Not to mention DAOs are now facing an uphill legal battle, with a recent court case in the United States ruling that legal liability could be extended to tokenholders.
In the absence of functioning DAOs, BORGs represent a more democratic entity than a
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