Re:Decentralized Woo Hoo
by crypto_is_king on Tuesday November 16, 2021 @11:41AM
(#29242659)
This is true, but at some point the community will figure out what's going on, and either leave to a more promising and uncompromised project, or find a way to limit the voting power of the attacker. You can see this happening now with the Curve Wars.
DAO just means decentralised organisation. Like token, also a very generic term, it can come in many forms. There is nothing inherent about a DAO that even includes tokens, let alone tokens that are fungible or even acquirable.
This is even worse than it sounds. Crypto projects like DAOs actually make hidden centralization a breeze for well-funded adversaries.
If someone has enough money, they can simply take over a DAO by buying enough tokens to swing the votes in the direction they want. Thanks to the way most blockchain solutions are implemented, they can even accumulate all of these tokens in ways that appear decentralized across many unique wallets that are nevertheless controlled by a central party.
Big players can acquire centralized control of decentralized projects in ways that consumers and regulators wouldn't even be able to detect.
Decentralized, tokenized ownership structures are definitely not "power to the people" structures. They are "power to the money" structures, where whoever can spend the most money is guaranteed to win and all of the participants have given up their ability to ever even know when it's happening.