In an ideal world, those that governed would actually give a shit about their constituents. Instead, what we get is elaborate theater as the rich and powerful relentlessly attempt to acquire more wealth and influence, regardless of any ethical sacrifice they can get away with. Some institutions are so big that even getting caught is worth it.
Marvelous!
DLT technology is a prototype for much more efficient governance. Crypto is all about trust and trustless environments. It is the best way to scale trust that humanity has ever invented by huge leaps and bounds. However, the technology is currently in the early stages and completely archaic. Our society still has central banks for God sakes. Silly humans.
Actifit
In the context of communities that actually care about their citizens I realized something. If you had a community that say provided healthcare to its members, then wouldn't that community now have a financial incentive to have healthy citizens?
If projects like 
Of course the logistics of enforcing such a rule-set without people taking advantage of it is a nightmare and might not scale itself. That's not really the point. The point is that crypto is creating decentralized communities that will actually work together and synergize at much higher levels.
What else?
Regaining community is a big deal. I can barely remember the last time I even gave a shit about my next door neighbors. It's been over ten years, multiple moves. Apathy and indifference run rampant because humanity isn't scaling properly. Blockchain gives us a chance to do things differently.
If communities care, then a bunch of new killer applications can enter the market. Imagine healthcare and insurance being handled by people that actually gave a shit about you. Those people are no longer trying to turn you into a profit? What a concept!
This new "business model" works because all profits are funneled into the value of the underlying coin. Everyone in the community has stake, everybody wins. This will also be the only way to avoid obsolescence from automation going forward. We'll all need to have passive income flowing in from communities that specialize in decentralized automated production. 3-D printing is going to be huge.
DPOS
Delegated Proof Of Stake is currently the obvious choice for advanced governance features going forward. We are a hive; a collective, and we need leaders. The most successful governance models will be the ones who can measure trust most accurately and with the fewest leaks. Distribution of stake to these individuals will lead to synergistic gains never before thought possible. It won't be easy, and it won't happen fast, but it will happen eventually. When it does, an explosion of innovation will follow.
Conclusion
Everything the state does, crypto can theoretically do it better.
A lot better.
We just need time to get there from here.
More like blood, sweat, and tears.