Yes, DAOs can replace traditional corporate governance functions with on-chain protocols. By leveraging smart contracts, DAOs enable decentralized decision-making, transparent voting, and automated execution of rules, reducing reliance on centralized authority. They ensure immutability and trust through blockchain, allowing stakeholders to participate in governance without intermediaries. However, challenges like scalability, legal recognition, and voter apathy may limit full replacement. Still, DAOs offer a viable alternative for transparent, efficient governance.