Ethereum co-founder Vitalik Buterin again criticized the DAO governance model based on transferreddigital tokens. According to him, it contradicts the very meaning of decentralized organizations.
“The proverb says:“Whoever most wants to manage people is least suitable for it.” Valid for DAOs controlled by transferable management tokens. The transferred tokens are needed only to give more power to “those who want to rule more than others,” Buterin wrote.
Not all commentators agreed with the co-founderEthereum. Some pointed to the inevitability of the consolidation of the decision-making process and called the idea of universal involvement of DAO participants a “pipe dream”. Others noted that token ownership should not be equated with the desire to control people.
Earlier, Buterin repeatedly criticized the DAO management model based on monetary voting. In March 2022, he stated that this approach is "a new version of plutocracy".
In 2021, the co-founder of Ethereum publisheda document in which he proposed several ways to solve the problems associated with such a control system. For example, reputation indicators fixed in the blockchain can be used instead of tokens.
Recall that in the ten largest DAOs in the industry, 90% of the votes come from less than 1% of holders of governance tokens, according to Chainalysis.
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