Cryptoknowmics
2022-09-20 12:31:44

DAOs Are Not Supposed to Function as Corporations, Asserts Vitalik Buterin

Decentralized autonomous organizations (DAOs), according to Ethereum co-founder Vitalik Buterin, shouldn’t be similar to corporations. He does not believe that the principles of decentralization do not apply in the actual world and that conventional corporate structures are more effective. DAOs are not corporations: where decentralization in autonomous organizations mattershttps://t.co/PDh9tIRXcm — vitalik.eth (@VitalikButerin) September 19, 2022 DAOs Not Supposed to Function as Corporations Buterin contends that concave decisions—those that rely on the collective wisdom of the group—are preferable to convex ones. As a result, he contends, DAOs with varied input “make a lot of sense.” The primary issues There are still some problems, though. Buterin emphasizes that the “succession dilemma” is the primary issue facing DAOs. These organizations must ensure that they can continue operating even if the original group retires. Buterin claims that DAOs must also manage “unexpected uncertainty.” Buterin Looking For Linux Foundation Model The co-founder of Ethereum acknowledges that methods influenced by governance may appear to be more effective in resolving these problems. Some DAOs will have to resemble “constructs from political science,” according to Buterin. The Linux Foundation, according to venture entrepreneur Bill Gurley, is the role model Buterin is seeking. The blockchain and a token are not necessary for this strategy, th...

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