Business

Successful DAO And Why Its Requires The Decentralized Governance

The downfall of DAO was not a matter that hit many by surprise since it was expected. The infamous hack had been a threat for over quite sometime. DAO was unable to take decisions as fast as would have been expected. Had it moved faster about its decision making, then it would have been completely different because it could have stopped the theft of funds that were being siphoned off by the attacker.

The blockchain developer community remains resilient and it is latest joint statement it made the declaration that it won’t give up on its efforts which are geared towards solving the issue of decentralized governance at scale.

Blockchain startup DAOStack will soon be unveiling a framework for setting up DAOs which are expected to help quite much in solving the issue.

Collective decision-making and the balancing act of trade-offs

A person well conversant with the latest developments but who at the same time wanted his identity shielded for reasons best known to him said that there was need to engage in collective decision-making at scale, an undertaking that demanded voter participation in a great way.

According to him, resilience against attacks was a matter that wasn’t supposed to be taken for granted. The balancing act of the trade-offs between resilience and scalability is a tricky affair according to market analysts.

Holographic Consensus is the concept that helps address the issue of scalability and it only takes a simple organization of 15 participants to provide a proper demonstration. Basically, it involves about 8 voters or more to achieve a straightforward majority.

Addressing scalability

The ways to address scalability are quite many and at that point it is worth noting that it can also be addressed by the votes being passed by a relative majority.

The issue about resilience essentially has got much to do with doing all that it takes to ensure that as many voters as possible get to vote. It has much to do with the monetization of attention. The DAOStack voting system will be operating on the concept of enabling the various participants make the proposal submissions to the collective for a decision.