A serial crypto architect Koichi Hatta argues that the debate between centralized teams and DAOs is a matter of timing rather than a moral choice. He views early-stage centralization as a “scaffolding” – necessary for rapid, coordinated execution and security during a protocol’s infancy.
The scaffolding theory of governance
In the volatile landscape of the decentralized finance world, the word decentralization is often used more as a marketing slogan than as a technical reality. While early Bitcoin pioneers once dreamed of a global web of independent miners, the reality has shifted to massive industrial mining companies and centralized governance committees. This centralization creep has brought the industry to a crossroads: are decentralized autonomous organizations (DAOs) a pipe dream, or is a centralized team a necessary evil for survival?
For 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 criticism of DAOs: that they are too slow and uncoordinated to survive the “wild west” of the industry. He compares early-stage centralization to scaffolding.
Hatta, a serial crypto architect, explains that a protocol needs coordinated execution in its early stages. Security decisions, integrations and incident response all require clear ownership. Without that, Hatta says, you don’t get decentralization; you get stagnation. However, Hatta argues that the failure of most projects is not the presence of a team, but the permanence of privilege.
“The real danger is not early coordination, but permanent privilege. Long-term credibility comes from what people can verify over time. Discretionary control should shrink, not expand, as the protocol matures,” Hatta said.
Although scaffolding is essential to building a skyscraper, the architect’s success is measured by when the scaffolding comes down and the building stands on its own.
Hatta is no newcomer to this build-and-exit model. In 2022, he designed the Marumaru non-fungible token (MARU) and reportedly brought the project to $6 million in liquidity. Hatta did not cling to power and maintained the ecosystem for three years before it came to an end as planned. According to Hatta, this proves that a project can have a life cycle that does not end in a ‘back pull’ or a founder-led decline. With NONPC he takes this model to the logical extreme.
Rule-bound infrastructure and the vault
Launched on the Solana blockchain, NONPC is designed to address what Hatta calls “NPC behavior,” or the tendency for users to follow algorithms and centralized authorities without question. To ensure that NONPC remains a public utility rather than a private company, Hatta has implemented several regulatory layers of implementation. These include a financial infrastructure managed by Squads Protocol multisig vaults to ensure that no individual can move money unilaterally.
Hatta’s approach challenges the industry standard of vague guarantees. Rather than ultimately promising decentralization, he advocates publishing a milestone-driven path from coordinated implementation to community governance. Hatta focuses on the tendency of capital to concentrate over time and focuses on making governance predictable and authority difficult to monopolize.
He argues that major governance actions and treasury moves should use time slots, giving stakeholders time to assess changes before they are implemented.
“This gives stakeholders time to review changes, discuss them publicly, and respond before they are implemented. It also forces teams to communicate changes in advance instead of creating surprises,” Hatta said.
He also argues that the board should function even when turnout is low, through clear proposal standards and delegation, allowing passive holders to route votes to specialists. Finally, he advises avoiding a single lever that controls everything. When authority is divided between upgrades, budgeting, and emergency actions, conquest attempts become more expensive and easier to challenge.
Yet critics argue that the founder’s departure creates a vacuum of responsibility as the market becomes volatile. Hatta argues that responsibility must shift from a person to a process. He believes that a sustainable protocol makes boundaries explicit, defines who can act and what delays apply.
“Volatility is not the time to rely on personal judgment; it is the time to rely on predefined constraints, controllable actions and governance pathways that are clear enough to use under stress,” he added.
If emergency powers exist, Hatta says, they should be limited in scope and time. For the founder of NONPC, true decentralization means credible neutrality where rules apply consistently and no one builds a permanent throne.
Regarding the argument for a hybrid system as a solution that might satisfy proponents and critics of DAOs, Hatta said, “A healthy hybrid separates authority. An implementation layer can move quickly through contributors and working groups, while a governance layer controls budgets, mandates and final rules.”
Hatta said a well-designed hybrid system uses sunset clauses and upgrade restrictions to prevent temporary coordination from turning into permanent control. The difference, he noted, is whether a system can prove that control diminishes over time and that decisions are accountable to rules rather than personalities.
Frequently asked questions ❓
- Why does this matter? Hatta argues that DAOs need early support before decentralization can credibly take hold.
- What is the relevance for Asia? His Solana-based NONPC project demonstrates a milestone-driven path from team control to community governance.
- What implications does this have for Africa and emerging markets? Rule-based implementation layers and time slots are intended to prevent capital tying up and ensure fair governance.
- What is the global takeaway? A hybrid model separates rapid execution from community supervision, proving that decentralization should limit privileges over time.