The post Vitalik Buterin on DAO Governance and New Identity Model appeared on BitcoinEthereumNews.com.

Vitalik Buterin, co-founder of Ethereum and a titan in the blockchain space, recently voiced his skepticism on the possibilities for an “anonymous society” or even some kind of douchey-speak: “A financialized pseudonymous society.” First reported by Foresight news, the statement has created quite a stir in the blockchain circles. Buterin claims that all such societies are fundamentally unstable and cannot exist in the long term. He stressed the requirement for a multidimensional concept of identity, especially one with “soul-binding” aspects, in order to maintain systemic stability. This article offers the community a new framework for reconsidering tried-and-tested models of DAO governance. It challenges us to consider how identity may—and perhaps should—be a core pillar of resilient systems. What Are DAOs?  Decentralized Autonomous Organizations (DAOs) are a new paradigm in organizational governance that allows businesses to interact without concern for the authenticity of their partners. These organizations run on blockchain and automate decision-making through the use of smart contracts to follow rules determined by their community.  The core offer of the DAO is that it promises a level playing field: no single player has ultimate power, and all decisions are made collectively by participants. Liquid democracy is one of the most important, as it allows low voter participation with little harm to governance outcomes. DAOs are fundamentally based on liquid democracy. Holders of the tokens used in governance can vote on proposals that will affect how the organization operates. That is potentially a more democratic, less centralized governance structure in theory. Governance Mechanisms in DAOs Although the goal of DAOs is to democratize power and give agency back to the community, their governance mechanisms are far from perfect. One of the more valuable bottlenecks is token concentration, where a few individuals hold many tokens and have undue influence over any decision-making…

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Filed under: News - @ August 22, 2024 7:17 am