The governance discussion is intensifying as Decentralized Autonomous Organizations (DAOs) become more popular in the blockchain space. The dilemma between empowering a few people and the freedom to voluntarily delegate decision-making power was highlighted in a Twitter thread created by Ethereum founder Vitalik Buterin.
In a tweet, Buterin said in memory of an old adage that power-hungry people are incapable of leading. The founder of Ethereum pointed out that this adage could apply to a DAO and argued that transferable governance tokens in a DAO contradicted the purpose of the DAO. Buterin noted that if governance can be transferred, it favors those after power.
While the Ethereum founder makes a valid point, some have responded with opposing views. In response, Twitter user Muki highlighted that it is inevitable to delegate decision-making power. According to the community member, it is impossible to expect everyone to participate, and voluntary delegation of decision-making authority is better than making decisions without knowledge or without participation at all.
Adding to the discussion, Twitter user Willyogo writing that holding transferable signs of governance is not the same as trying to rule people. However, this community member also said that OCTs could still be improved in terms of voting mechanism.
There is also a Twitter user Vagobond intervention, saying that delegates who cannot be completely recalled is a way forward. In this idea, the chosen delegates could immediately lose their authority when they cease to represent those to whom votes have been delegated.
While others focused on governance mechanisms, some pointed to the use of blockchain-based technologies, such as selecting prominent positions in a DAO using verifiable randomness. Another community member suggested randomly selecting token holders and rotating when the selected holder shows no activity on the blockchain.
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At the recent Ethereum Community Conference held in Paris, Web3 Consultant Hilary Kivitz discussed DAOs and how they can fight hostile takeovers. According to Kivitz, there are solutions such as adding poison pills to smart contracts to dilute operator votes.
Meanwhile, in a recent interview with Cointelegraph, Alex Tapscott mentioned that DAO developments are something to watch during the bear market. Tapscott pointed out that OABs have the potential to replace traditional organizations in organizing resources.