Decentralized Governance Died With These Projects
Why Decentralization Alone Cannot Guarantee Fair and Transparent Governance
In the crypto space, decentralized autonomous organizations (DAOs) were designed to be more transparent, open, and democratic than traditional organizations.
However, one of the biggest hurdles for DAOs is ensuring that decision-making is not controlled by a small group of individuals with a disproportionate amount of voting power.
Unfortunately, some projects have fallen short in this regard. Here are some examples of projects that failed in their attempt to establish decentralized governance.
Arbitrum made some bad choices as regards to its first DAO vote and fund use, which didn’t favor community members, and $1B ARB tokens were at risk because of a lack of full on-chain governance. This messy event caused quite a stir among the crypto community.
If whales like a16z can buy a controlling share, it undermines the idea of decentralization. It's certain that Uniswap must rethink their governance mechanics. DAOs have to explore new approaches to ensure true decentralization.
Latest news reveals that Starknet DAO community members will be responsible for their new protocol update leading to a mainnet launch. The success will be seen soon.
What happened at FTX is a corporate governance problem, not a crypto problem. After one lawsuit after another, it bounced back to the lack of proper documentation on how customer funds were used.
SEC is out again with its lawsuit. Next on the hit list are "governance tokens." All the best to crypto projects who will not face the music for Eisenberg's mistakes.
Cosmos fans, you might wanna check this one out. Osmosis governance has decided to merge with Cosmos Hub.
The Cosmos is expanding rapidly.
To further enhance the ecosystem and the community, Osmosis governance has decided to merge with @cosmoshub.
We're thrilled to announce COSMOSIS as the first Conglomerate chain!
🧵👇 Read the entire thread for all the information! https://t.co/YWDCcmB1fv
— Osmosis 🧪 (@osmosiszone)
Apr 1, 2023
🤪 The Warped Joe
The Warped Joe calls DAOs & governance tokens bullshit. But you can't blame a man hurt by the ecosystem meant to.
Go fvck yourself!
I like the speed of Arbitrum
It wasn't a request...just ratification
[checks definition of the word]
[doesn't match what they think it means]
Your governance tokens mean shit
DAOs are BS
And most L2s are in-debt to VCs
— Joe (@TheWarpedJoe)
Apr 3, 2023
📜 Post Mortem
In conclusion, decentralized governance is still an ongoing experiment, and the crypto community is learning as it goes. However, as these examples show, there are risks and challenges involved in implementing decentralized governance. DAOs must continue to evolve and adapt to ensure true decentralization and democratization.