A poor Coordinape setup could mean contributors are incentivised to reward their friends and the most active Discord users, not those who actually provided meaningful value.

One less obvious shortcoming of token-based DAOs is their flat structures. By flat structure, I am referring to the fact that token-based DAOs are often direct democracies where every proposal is voted on by all token holders, without any political tools like Parliaments, executive branches, bureaucracies, standing committees, and so on.