DAOs are a popular concept in cryptocurrency, personally I hold a number of governance tokens and participated in a couple of community voting. Cryptocurrency projects are adopting measures to truly decentralize both their technology and their community governance model. Community is the back-bone of every successful cryptocurrency project. Community support is vital for the growth of revolutionary concepts; blockchain technology and cryptocurrency are arguably the biggest technological and economic revolutions of the past decade.
Unfortunately, most cryptocurrency projects have done a far better job achieving the technical aspect of decentralization than they have done in their administrative areas. A number of regular practices mitigates community involvement and limits the extent to which the community can contribute to the decision-making process in a project which portrays itself as decentralized in all aspect, this includes:
Obscurity in funds management
Once members of a cryptocurrency community learn about a transfer of a substantial amount of the coins they support to another wallet, many questions arise as regards the reason for such transfer and the effect it will have on the project and its token. Regardless of how genuine the project has proved to be, the question of ‘an exit scam’ will always rise in the wake of unexplained huge fund transfers. This has caused some level of volatility in crypto prices as the coin holders panic-sell in response to transfers of this sort. This has affected the crypto space so much and is implicated in the questionable stability of crypto prices.Centralized decision on employment, staff remuneration and work time.
Decentralized? If yes, then the community should also have a say about who works for them and should also be part of the decision about how much these staff are paid for their services and how much work they also do for the community. This is an ideal example of decentralization a...