What Are the Limitations of Using Traditional DCF for Early-Stage Decentralized Autonomous Organizations (DAOs)?

Traditional DCF relies on predictable, stable cash flow projections, which are often impossible for early-stage DAOs due to their nascent status, uncertain adoption, and rapidly changing protocol parameters. Early DAOs may have zero or minimal revenue, making the projection of future cash flows highly speculative.

Additionally, the decentralized and non-corporate structure of a DAO makes defining "cash flow" and "equity" challenging.