Smart contracts model error, and why DAOs need a red button

By now it should be clear that immutability is an awesome feature, but that it comes at the expense of some risks.

Smart contracts are models of what their designers wanted them to do, and, as any model, it is accompanied by model error: uncertainty.

One universal characteristic of model error is that it can be due to simplicity of the model, but, a less known one, is that it is also due to complexity: after a certain point of model complexity, the model error grows again.

Smart contracts complexity will grow, and this will unavoidably increase their model error.

DAOs relying on smart contracts will tend to be complex and will, therefore, need a red button: a mechanism in which human consensum can force the transfer (or recovery) of tokens from a given account, even without the authorization of the account holder.

A single golf clap? Or a long standing ovation?

By clapping more or less, you can signal to us which stories really stand out.