DAOs: The last couple of months have seen surprising growth for decentralized autonomous organizations (DAOs) amid an otherwise struggling crypto market, says Sheraz Ahmed, Managing Partner of Storm Partners.
Several platforms and protocols, including DAOMaker and Uniswap, have performed exceptionally well relative to current trends.
While the price increases are positive, there has also been increased community activity for many platforms. BitDAO, for example, has had a noticeable boost, with a sizable percentage of its community consistently voting on its recent barrage of proposals. These are promising signs for the ecosystem, which will undoubtedly play crucial roles in the resurgence of the overall crypto space.
Arguably one of the most innovative uses for blockchain technology, DAOs utilize smart contracts to automate processes that usually require a centralized authority. For example, rather than a board directing an organization’s future, voting rights go to token holders who, in principle, have the organization’s best interests in mind. In essence, they allow those invested the opportunity to dictate their direction in a relatively democratic manner. However, this isn’t the case for every blockchain-based project.
DAOs: A Decentralized System
The original intention of many crypto pioneers was to create a decentralized, trustless system that would be easily accessible to anyone, anywhere. A system that puts the power back in the hands of the public by allowing them to voice their opinions and enforce their ideas through consensus. Since then, that particular principle has faced challenges as blockchain technology grows.
Many of today’s blockchains are owned and operated by single entities that authorize who can join and participate in them. This is in stark contrast to the first blockchain, Bitcoin, which has no single owner or governing body, and anyone can join. All activity is transparent and recorded, but users can operate in total anonymity.
In some instances, there are benefits to
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