According to CoinMeta, Sam Macpherson indicates that the governance model of the sub-DAO can resolve the governance dilemmas of a flat DAO. In a flat DAO, every major decision must go through the same governance process, leading to slow decision-making, voter fatigue, and the formation of political factions. The sub-DAO model directs governance competition towards more productive outcomes, with the core DAO establishing high-level rules, while the sub-DAO is independently responsible for operational decisions such as lending markets, risk management, and capital deployment, proving its value through results.