The flaw in our thinking is the belief that as long as the long term rational incentives are there, it will all work itself out. The proper incentives are necessary but not sufficient. To build a well functioning society we need those long term vested interest, but it also takes a concerted effort to make it work, and accountability (because not everyone is driven by positive long-term-rational incentives).
Democracy doesn't 'just work' everywhere it is put in place (very many examples of that), it needs the political will and culture to make it work. The same is true of crypto governance.
Proper governance? Jesus, just use your fucking flags for abusive behavior. What a bunch of children.