Ethereum founder speaks against transferable governance, community responds

As decentralized autonomous organisations (DAOs), become more popular in blockchain space, the governance debate intensifies. Vitalik Buterin, founder of Ethereum (ETH), highlighted the dilemma between delegating decision power to a few and giving power to others.

Buterin tweeted a classic saying that power-hungry people are not good leaders. Buterin, the founder of Ethereum, noted that this saying could be applied to DAOs. He argued that DAOs that have transferable governance tokens are in contradiction to the entire point of DAOs. Buterin pointed out that governance can be transferred and empowers those who seek power.

Although the Ethereum founder makes a valid point some people have reacted with differing opinions. Twitter user Muki responded that delegating decision power is inevitable. The community member stated that it is impossible to expect everyone to participate and that a voluntary delegation is better than making uninformed or non-participating decisions.

Willyogo, a Twitter user, wrote that having transferable governance tokens doesn’t mean you want to be the ruler of people. The community member said that DAOs could use some improvements in voting mechanics.

Vagobond, a Twitter user, also commented that fully recallable delegate is an option to help us move forward. This idea suggests that the delegates selected could lose their authority immediately after they cease representing the delegated votes.

Others focused on governance, while others suggested blockchain-based technologies such as picking the most important positions in a DAO with verifiable randomness. Another member of the community suggested randomly selecting token holders, and then rotating when that holder is not active on-chain.

Similar: Lido DOA: Ethereum’s largest Merge staker rises 400% in July — but technical flash warning

Hilary Kivitz, Web3’s advisor, spoke at the Ethereum Community Conference in Paris about DAOs and how to fight hostile takeovers. Kivitz says there are ways to weaken the votes of exploiters, such as injecting poison pills into smart contract contracts.

Alex Tapscott, a Cointelegraph interviewee, stated that DAO developments should be monitored during bear markets. Tapscott pointed out that DAOs could replace traditional organizations when it comes to organizing resources.

Close Bitnami banner