Inside Aragon’s Bold Bet on the Future of Decentralized Power

Few leaders have seen the improvement of DAOs from as many angles as Anthony Leutenegger, from early experimentation to steering one of the ecosystem’s most influential governance initiatives. In this interview, the Aragon CEO displays on how decentralized governance is maturing in 2025, why the subsequent wave of DAOs will look nothing like their predecessors, and what it actually takes to construct resilient, clear decision-making methods at scale.

Anthony, might you share your journey into Web3?

I’ve been working at Aragon for 4 and a half years. I joined crypto as a result of I discovered this nice venture that was a subsidiary of Aragon referred to as Vocdoni, and so they had been constructing a blockchain-based voting protocol. Its purpose was finally to have nation-states operating incorruptible elections. 

I believed, what an unimaginable and excellent use case for blockchain expertise. We’re in a world and business the place there’s quite a bit of hypothesis and cash flowing round, and people are authentic use circumstances, however with the ability to have incorruptible elections might resolve a plethora of world issues.

That’s why I utilized for a job at Vocdoni. I finally moved into the Aragon venture, which owned Vocdoni at the time and targeted extra on governance, capital distribution, and token economics at a a lot greater degree than simply voting. I later took over the firm, and now issues are going nice.

Could you give us an summary of Aragon’s present mission and the way it has developed over the previous couple of years?

Yeah, our present mission has undoubtedly developed over the previous couple of years. It was about permitting organizations to experiment with governance at the pace of software program. The level was that you would have choices executed with out trusted intermediaries. It’s the identical as making a fee on a blockchain; you take away the middleman. With blockchain expertise, we will take away intermediaries from executing an motion. In the conventional world, individuals vote or take part, however actions normally require others to execute them.

Now, choices, whether or not it’s transferring funds, upgrading code, or granting entry, may be made by a bigger group of individuals with out anybody in the center. It turns into very censorship-resistant. It’s the first time in historical past we will do that as a result of we abide by the code as legislation.

That was Aragon’s previous mission, and we nonetheless work closely in governance. We nonetheless permit organizations to construct their access-control mechanisms for the way they govern their code base. For instance, when Lido needs to improve its code, they do it on Aragon’s sensible contracts. We safe their code base. If Katana needs to maneuver cash on the new Polygon venture, that’s the identical factor.

Now we’ve expanded into tokenomics. We help initiatives in constructing their very own governance methods, tokenomic methods, and development flywheels. Our mission is way broader at the moment.

In your view, what are the key differentiators of Aragon’s governance framework in comparison with different DAO tooling or platforms?

Yeah, we undoubtedly have the latest modular mannequin. We separate the vault and core permissions from the governance methodologies, and anybody can set up these methodologies or plugins to attain what they need. For instance, in order for you a governance kind that isn’t token-based voting, you’ll be able to set up the multisig plugin or the digital identification plugin.

You may even set up a number of plugins at the identical time, permitting totally different teams, perhaps a multisig and token holders, to control collectively. It’s extremely customizable, upgradable, and all the time includes tokenomics. Tokens drive virtually every little thing in our business, so with the Aragon stack, you’ll be able to create lockers, stakers, and mechanisms for locking, staking, and capital distribution. It’s modular, customizable, and future-proof.

What is the strategic significance of modular governance contracts, for instance, plugins for scaling organizations over time?

Yeah, it’s tremendous necessary. Major initiatives need to alter governance and capital flows extra simply, however many can’t do it safely as a result of they’re caught with previous, heavy, library-based contracts. Making issues modular permits simpler changes. Upgrading turns into so simple as uninstalling and putting in a brand new plugin, which is only a small half of the code base.

You can improve from multisig to token-holder voting as you decentralize over time. You can add staking mechanisms for token holders to manage capital flows. It makes governance safer, extra customizable, and extra future-proof. It’s unquestionably a greater system.

What are the most necessary coverage or regulatory tendencies you see that may have an effect on on-chain organizations in the subsequent 12 to 24 months?

Yeah, that’s a terrific query. What we’re seeing, particularly from the United States and from what corporations like a16z are discussing, is that on-chain possession or on-chain management will develop into the most necessary parameter defining decentralization. It received’t essentially appear to be the previous DAO mannequin the place everybody votes on every little thing. 

It will focus on a smaller floor space of management, however that management have to be decentralized, which means token holders should even have management with out an middleman basis or multisig. Or the system will must be immutable, the place no particular person or group can change the code for private profit.

So decentralization will probably be outlined by management and possession. I feel we’ll see much less generalized governance and extra focus on governing particular issues that have to be decentralized, protocol upgrades, price switches that distribute worth to token holders, and related elements.

How do you put together for adapting to those regulatory adjustments?

Luckily, we’ve been making ready for years. Three years in the past, we already noticed this drawback and began transferring towards addressing it. On our present stack, you’ll be able to management your protocol in a extremely decentralized means with out having to vote on every little thing. Different individuals can management various things, and initiatives can outline how entry management is structured.

On prime of that, we create automated and programmatic capital-distribution flows. Projects that need to accrue worth to their token can accomplish that in a programmatic, automated means that isn’t centrally managed, making it extra prone to meet future regulatory expectations, one thing our rivals can’t do.

What are the most important dangers you foresee for organizations adopting on-chain governance, and the way does Aragon search to mitigate them?

I feel the technological aspect is usually solved. We’ve created a really protected surroundings for organizations, and we’ve secured 45 billion {dollars} in property since 2017–18. For me, the larger danger is what’s being managed and by whom.

Right now, many initiatives relying on token holders for safety face an issue: safety degrades over time if the token has no worth. If a token secures a protocol however the venture isn’t producing income, there’s no incentive to carry it. People promote, decentralization decreases, and the system breaks down.

We want tokens to carry worth and safe one thing significant. When that occurs, the system naturally turns into safer.

For a corporation contemplating launching a DAO by the Aragon app, what key strategic governance choices have to be made upfront?

They want to know who will management what. They additionally want to know the worth of the token that controls protocol parameters, which is important. Other concerns embody whether or not they need a VE mannequin, a locker mannequin, for token holders to lock or stake, or whether or not they need an ERC20 vote-standard token. These are nuanced choices, and they need to attain out to us earlier than launching.

But most significantly, they have to perceive the place their product is heading, how it will likely be managed, and why individuals will take part in making certain it stays decentralized.

Could you share any success tales or case research the place Aragon’s governance structure considerably improved organizational outcomes?

Yeah, for certain. Let’s have a look at Curve. Many initiatives are actually adopting the VE gauge mechanism, which is turning into standard once more. The first model of ve & gauges was in-built Aragon in 2020 by Curve. VE stands for vote escrow, which means a token holder locks tokens for a interval and features particular voting energy based mostly on parameters set by the venture.

The thought is that as a result of they’re locked into the system, they need the token to be price extra when it unlocks. They are sometimes given energy over distributing capital, liquidity, or different necessary sources. They vote in the long-term curiosity of the protocol. The extra they take part, the extra rewards they obtain.

This creates a development flywheel, incentives to carry, take part, and make good choices. Projects with respectable product-market match utilizing ve & gauges, Curve, Aerodrome, Katana, and others, have seen optimistic outcomes, together with a better share of tokens locked and elevated valuation.

How do you view the future of governance requirements, finest practices, auditability, and transparency for on-chain organizations?

I don’t assume we’re at a technological level the place we must always outline strict requirements but. It’s nonetheless too early. We want extra natural adoption and extra tooling earlier than issues ossify into requirements.

However, governance requirements will probably be formed by regulation, notably round how capital and incentives may be distributed. Projects in the end need to generate income and improve token worth, so that they’ll be taught and adapt as clearer laws emerge. As adoption grows and extra use circumstances seem, we’ll have the ability to outline higher finest practices.

We already see early examples. Lido is a profitable DAO working in a strategic means. The ve & gauge mechanism works properly for DEXs like Curve. And DUNA is rising for initiatives like Uniswap, with decentralized governance over particular parameters.

We’re beginning to see the first hints of requirements and finest practices.

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