Governments are known for wasting money. Why?

- People who spend the money didn't have to earn it,
- Decisions are democratic, so it's hard to hold people accountable for wasted money,
- Money is public, so people treat it more lightly than their own $.

How do DAOs ensure they don't become like governments?

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maybe this is too spicy, but the main reason to me has been the incestuous relationships, especially revolving doors for lobbying and contracts.

if DAOs have more moderated votes like pairwise coordination subsidies (https://ethresear.ch/t/pairwise-coordination-subsidies-a-new-quadratic-funding-design/5553) & the...

I'm online sometimes

https://bento.me/m-j-r

and the decision-making/ treasury isn't in the shape of a pyramid, then that's a really good start to a somewhat hardened DAO.
there should definitely be more holacracies/futarchies, and impactDAOs should definitely have "proof of good faith" when they crowdraise (otherwise pre-seed's the cost of discovered rugpull)