Serial cryptographic architect Koichi Hatta argues that the debate between centralized teams and DAOs is a matter of timing, not moral choice. He views early centralization as “scaffolding”, which is necessary for rapid, coordinated execution and security in the early stages of a protocol.
Scaffolding theory of governance
In the volatile landscape of decentralized finance, the word decentralized is more often used as a marketing slogan than a technical reality. Just as early Bitcoin pioneers once dreamed of a global web of independent miners, reality has shifted to large-scale industrial mining farms and centralized control boards. This increasing centralization has brought the industry to a crossroads. Are decentralized autonomous organizations (DAOs) a pipe dream, or are centralized teams a necessary evil for survival?
To Koichi Hatta, the founder of No. NPC Society (NONPC), the answer lies not in choosing between the two, but in a disciplined transition from one to the other. Hatta’s philosophy addresses the main criticisms of DAOs: that they are too slow and uncoordinated to survive in the “West” of the industry. He likens early centralization to scaffolding.
Hatta, a serial crypto architect, explains that in the early stages, protocols need to be adjusted and executed. Security decision-making, integration, and incident response all require clear ownership. Without that, Hatta says, decentralization will not be possible. It becomes stagnant. But Hatta argues that most projects fail not because of the team, but because of perpetuating privilege.
“The real danger is not initial adjustments, but lasting privileges. Long-term credibility comes from people being able to verify over time. As the protocol matures, discretionary controls should shrink, not grow,” Hatta said.
Scaffolding is essential to the construction of skyscrapers, but an architect’s success is measured by the moment the scaffolding comes down and the building stands on its own.
Hatta is no novice to this build-and-exit model. In 2022, he designed the Marmar Non-Fungible Token (MARU), reportedly boosting the project’s liquidity to $6 million. Mr. Hatta did not cling to power and maintained the ecosystem for three years until its planned demise. According to Hatta, this proves that projects can have lifecycles that don’t end with a “lag pull” or founder-driven decline. In NONPC, he pushes this model to its logical extreme.
Infrastructure and vaults that follow the rules
Launched on the Solana blockchain, NONPC is designed to address what Hatta calls “.NPC To ensure that NONPC remains a public utility rather than a private company, Hatta implemented several rule-bound enforcement layers. This includes a financial infrastructure managed by the Squads protocol’s multisig vault, which ensures that no single individual can unilaterally move funds.
Hatta’s approach challenges the industry standard of vague guarantees. Rather than ultimately promising decentralization, we advocate exposing a milestone-driven path from coordinated execution to community rules. Addressing the tendency for capital to become more concentrated over time, Hatta focuses on making governance more predictable and less likely to monopolize power.
He argues that major governance activities and Treasury moves should use timelocks to give stakeholders time to consider changes before they are implemented.
“This gives stakeholders time to consider, publicly discuss, and respond to changes before implementation. It also requires teams to communicate changes in advance, rather than surprise them,” Hatta said.
He also argues that governance must work, even when turnout is low, through clear proposal criteria and delegation that allows reluctant holders to direct their votes to experts. Finally, he advises avoiding a single lever that controls everything. Capture attempts become more expensive and more challenging when authority is divided into upgrades, budgeting, and emergency measures.
Still, critics argue that a founder’s departure creates a liability vacuum in the event of market instability. Hatta counters that accountability should shift from people to processes. He believes durable protocols provide clear boundaries, defining who can act and what delays apply.
He added: “In times of heightened volatility, it’s not the time to rely on personal judgment. It’s the time to rely on pre-defined constraints, auditable measures and clear governance channels that can be used even under stress.”
Hatta argues that if emergency powers exist, they should be narrow in scope and limited in duration. For the NONPC founders, true decentralization means reliable neutrality, where rules are applied consistently and no one establishes a permanent throne.
Regarding the argument for a hybrid system as a solution that potentially satisfies DAO supporters and critics, Hatta said: “A healthy hybrid separates power. The execution layer can move quickly through contributors and working groups, while the governance layer controls budget, authority, and final rules.”
Hatta said a well-designed hybrid system uses sunset clauses and upgrade constraints to prevent temporary adjustments from developing into permanent controls. The difference, he noted, is whether the system can prove that control narrows over time and that the rules, not the individuals, are responsible for decisions.
Frequently asked questions ❓
- Why is this important? Hatta argues that DAOs need to gain a foothold early before decentralization is firmly established.
- What is its relevance to Asia? His Solana-based NONPC project charts a milestone-driven path from team management to community rules.
- How will this impact Africa and emerging markets? Rule-bound enforcement layers and time-locks aim to prevent capital capture and ensure fair governance.
- What is the global point? Hybrid models separate rapid execution and community oversight, and decentralization has proven to limit power over time.
