Crypto Investor Discusses Downsides of DAOs In Crypto
- Ran Neuner Recently, took to Twitter to express his worries about DAOs’ place in the crypto space.
- The Crypto investor believes that DAOs slow down decision-making processes and make them costly.
- Neuner The case of ArbitrumWhere developers have to take part in a democratic rather than building process.
Crypto Banter’s Ran Neuner recently spoke out about the issue of decentralized autonomous organizations (DAOs) and the concerns they raise in the crypto industry. On Twitter He shared his views on the DAO structure. As DAOs, an internet-native legal organization, serve as a legal framework with no central authority. Members use smart contracts to make decisions and vote on proposals.
One of my greatest concerns in crypto is DAO’s. It’s a fundamental worry – Here This is whyHistorically We all know that the majority of decisions taken by voting have a high likelihood of being influenced in favor for the mass vote.
— Ran Neuner (@cryptomanran) April 9, 2023
Ran NeunerThe well-known crypto investor had something to say about DAOs. He went to Twitter to share his worries on the matter. As per NeunerThe fact that it is difficult to change the opinion of the “average masses” when using DAOs voting process, members can vote on governance proposals.
According To NeunerDAOs have made it hard to believe that voting results will be influenced by the majority. As per The crypto trader claims that the masses tend towards the center of the distribution curve. This implies they will tend to vote against the average.
“This makes all decisions eventually average and slows any process and adds huge cost. This is a fundamental issue to all crypto and it worries me about the future of this industry model,” Neuner Tweeted.
Ran Neuner The DAO issue with layer 2 scaling solutions was also mentioned. Arbitrum, where the community has pushed back against developers using the DAO over concerns surrounding the developers’ plans for the protocol. As per Neuner According to the crypto trader, the DAO has caused delays in decision-making and made it more expensive. Developers Instead of building on the protocol, they are too busy being held hostage in a democratic process.
This article Crypto Investor Discusses Downsides of DAOs In Crypto was first published on Coin Edition.
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