It already exists without crypto tokens and it’s called a referendum.
Different countries use it to different extents. The Swiss Country does a lot of it, for example.
But referendums are not always a good idea and are extremely prone to manipulation by the media and populism (see Brexit). Minorities are also underrepresented in referendums, which poses a real problem with these things.
Having an elected government with separation of power is definitely always better, than whatever DAOs are doing.
Zionism is an Austrian idea, that the British started to enact after the Ottoman Empire fell in 1917. The United Nations then published their partition plan in 1947 which was followed by the Israel Declaration of Independence in 1948.
Which means yes, technically the founding was done by Holocaust Survivors, but in reality Israels history is not too dissimilar to Colonialism.