We already see it in our local governments. We even see it in larger corporations. It's even visible, with decreasing rarity based on the size of group, in a building administration group or in a group of friends who pool money to do something.
This reasoning makes me think we should go to decentralisation and federation until the power being wielded is minuscole, ideally being limited only to your person and your private property.
There can be several iterations, the ultimate being a free society where individuals are the only structure and transactions are an voluntary (eg. No governments at all, private everything)