r/CryptoCurrency • u/[deleted] • Nov 08 '23
PRIVACY A new important DAO paper just dropped, introducing Dark DAOs and how they pose a threat to any existing DAO.
[deleted]
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u/1HashPerSecond 🟩 0 / 0 🦠 Nov 09 '23
Any ELI5 with exemples ? I don't get the purpose
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u/WingChungGuruKhabib 🟨 0 / 3K 🦠 Nov 09 '23
Say you have a DAO like Uniswap, people are able to vote on proposals. Their vote is weighted with the number of Uni tokens they hold. Now an outside entity, like Binance for example, can ask the wallet owner; I'll take ownership of the wallet just for the vote on this proposal and i'll give you $1k for it.
The wallet might be worth $100k in Uni tokens, but Binance just bought that same vote for $1k.
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Nov 10 '23
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u/WingChungGuruKhabib 🟨 0 / 3K 🦠 Nov 10 '23
Think you need to reread the post, this paper makes specific use of Oasis. New tech just so happens to bring new problems.
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Nov 08 '23
Not sure why people think this is a bad thing. MetaDAO governance has been in experimental stages for a while. I was seriously into PowerPool for this, and if you think about it, Aura and Convex are basically that.
A market to trade decision making is probably a good think. If you have votes to allocate, there should be a way to either sell or pay for good governance via delegation.
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u/WingChungGuruKhabib 🟨 0 / 3K 🦠 Nov 08 '23
I dont really understand why you think it is a good thing.
If a DAO, let's say Uniswap proposes something then you say it would be good that an entity, Binance for instance, could buy all the votes and make it impossible to pass any proposition?
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Nov 08 '23
Open and permisionless tokens means just that. Open and permissionless. Nothing is stopping anyone from doing that today, by design.
I'm not sure why people think this is bad. Capital holders who obtained governance rights clearly either paid for it or have stake in the proper governance. A system with tokens always had token stake holders anyway so you signed up for that.
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u/WingChungGuruKhabib 🟨 0 / 3K 🦠 Nov 08 '23 edited Nov 08 '23
It could allow for influencing a vote using a fraction of the cost. This would be why I think it is a bad thing.
Edit:
"Nothing is stopping anyone from doing that today, by design."
It does, it wasn't possible to actually vote using someone else's wallet without actually getting ahold of their wallet or their tokens.
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Nov 08 '23
Such is life. Governance token holders that command large swaths of programmatic capital have a responsibility to properly value their votes and maintain the systems, otherwise they lose money. Welcome to capitalism where you will not get a bailout for your stupidity.
I'm not saying it could lead to bad outcomes, I'm merely saying what is. If you delegate your tokens for a price to mercenary voters and they bungle your vote that leads to destruction of your protocol and the token being worth zero that's on you.
This is also why I think these governance tokens are worth zero. Many of these protocols need a rewrite so thr governance tokens only command system parameters and reward them for that. Because many of these protocols are more like businesses or trust funds, it only generates more opportunity for this non-sense. The protocols really should be governance minimized and not control a ton of internal value. If protocols were basically valueless public goods, they would inherently have no value, but people want number go up technology so here we are.
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Nov 09 '23
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u/WingChungGuruKhabib 🟨 0 / 3K 🦠 Nov 09 '23
I mean it's right there in the tweet that I linked, tweet gives a little extra information as well.
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Nov 09 '23
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u/WingChungGuruKhabib 🟨 0 / 3K 🦠 Nov 09 '23
What? you can just click the tweet and see the paper. What is the issue here? lol
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u/CointestMod Nov 08 '23
DAO pros & cons with related info are in the collapsed comments below.