{"id":13821,"date":"2022-09-01T05:34:17","date_gmt":"2022-09-01T05:34:17","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/daos-are-broken-and-need-fixing-laguna-labs-ceo-says\/"},"modified":"2022-09-01T05:34:17","modified_gmt":"2022-09-01T05:34:17","slug":"daos-are-broken-and-need-fixing-laguna-labs-ceo-says","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/daos-are-broken-and-need-fixing-laguna-labs-ceo-says\/","title":{"rendered":"DAOs are broken and need fixing, Laguna Labs CEO says"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<ul>\n<li><strong><em>Laguna Labs CEO Stefan Rust says MakerDAO\u2019s quest to free float DAI is a great move.<\/em><\/strong><\/li>\n<li><strong><em>However, he says the whole idea of DAOs isn\u2019t the utopian democracy people think they are.<\/em><\/strong><\/li>\n<\/ul>\n<p dir=\"ltr\">Stefan Rust, CEO of blockchain innovation hub Laguna Labs, says proposals to have Maker DAO\u2019s native token fully depegged from the US dollar might not be the only problem out there for the crypto platform.<\/p>\n<p dir=\"ltr\">According to Rust, even more pressing could be the structure of decentralised autonomous organisations (DAOs). He says this is what Maker and the broader crypto industry needs to focus on even as events elsewhere inform the desire to depeg Dai.<\/p>\n<p dir=\"ltr\">The Laguna Labs CEO\u2019s comments, shared with CoinJournal on Wednesday, come a few days after MakerDAO co-founder Rune Christensen discussed why depegging the native token DAI from USD Coin (USDC) might be Maker\u2019s way forward.<\/p>\n<p dir=\"ltr\">The Maker co-founder\u2019s advice to the community was tempered with what he summed as concerns over a \u201c<em>physical crackdown against crypto<\/em>\u201d by an authoritarian system. The views followed the US Treasury\u2019s sanctions on crypto mixing service Tornado Cash.<\/p>\n<h2>Rust says DAOs are broken<\/h2>\n<p dir=\"ltr\">According to Rune, and in reference to Maker\u2019s DAI plans, the whole DAO ecosystem is \u201cbroken\u201d and needs fixing if the crypto industry is to see even more growth.<\/p>\n<p dir=\"ltr\">\u201cThis is a great idea and one I\u2019m excited to watch Maker DAO explore,\u201d Rust said referring to the DAI depeg discussion. \u201c<em>[But] the US dollar is not, however, Maker\u2019s only problem: the governance model of all decentralised autonomous organisations (DAOs), needs serious attention if the cryptocurrency industry is to thrive<\/em>,\u201d he added.<\/p>\n<p dir=\"ltr\">The problems bedevilling the decentralised finance (DeFi) ecosystem as seen over the past few years, with hacks and Ponzi scheme-like projects seeing many people lose huge amounts of money adds to the whole outlook of the DAO ecosystem being broken.<\/p>\n<h3>Not the utopian democracy you think<\/h3>\n<p dir=\"ltr\">Rust also notes that, even though most users find DeFi an \u201cintimidating space,\u201d the DAOs governing many of the protocols within the industry simply do not work.\u00a0<\/p>\n<p dir=\"ltr\">He believes DAOs do not run on the kind of utopian democracy that most within the crypto space would like to think they are.<\/p>\n<p dir=\"ltr\">\u201c<em>Indeed, as we saw recently with Maker DAO and its \u201ccommunity\u201d vote to allow US banks to borrow DAI while adding US Treasuries to the portfolio, like all democracies, DAOs are open to outsized influence from those with the largest share of tokens, or the ability to sway opinion<\/em>.\u201d<\/p>\n<p dir=\"ltr\">In his opinion, Rust sees the best path forward for crypto following the recent booms and busts would be for the sector to pivot to its original mission of a \u201c<em>decentralised, censorship-resistant financial ecosystem<\/em>.\u201d<\/p>\n<\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/usd-isnt-makers-only-problem-daos-are-broken\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) Laguna Labs CEO Stefan Rust says MakerDAO\u2019s quest to free float DAI is a great move. However, he says the whole idea of DAOs isn\u2019t the utopian democracy people think they are. Stefan Rust, CEO of blockchain innovation hub Laguna Labs, says proposals [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":13822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/13821"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=13821"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/13821\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/13822"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=13821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=13821"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=13821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}