Fun

News Feed - 2023-07-15 05:07:00

Tristan Greene3 hours agoToken hoarders defeat the purpose of most DAOs: StudyThe study also showed that decentralized organizations work best when they’re built around a tight-knit group of focused participants.993 Total views11 Total sharesListen to article 0:00NewsJoin us on social networksA pair of researchers from the University of Texas at Austin and Princeton University conducted a study to determine how tokenization affects decentralization in decentralized autonomous organizations (DAOs). Their findings indicate that many of the challenges to autonomy are related to the reasons individual users have for participating. 


According to their research, the larger a DAO grows, the more incentive participants have to consider DAO tokens investments:“The presence of investors diverts the subsidy away from users and thus harms their participation. More importantly, investors may even take a majority stake to seize control of the platform.”


In a typical token-based DAO scheme, rather than having a CEO or leader implement decisions, individual participants are issued distributed authority through tokens. This prevents the people who maintain the DAO from exploiting the participants because their tokens work like votes.


“The key distinction between tokens and securities,” per the team’s research paper, “is that tokens are a claim to the platform’s services while securities are a claim to its revenue.”


As long as the participants in a DAO are aligned in purpose and willing to spend their tokens to vote for actions that move that purpose forward or on services and utilities that provide value to the community, the DAO tends to thrive.


Related:IMF sees climate change, DAOs, CBDC as threats to Marshall Islands, urges reforms


The researchers modeled DAOs over time to determine how user growth and tokenization affect outcomes. Their primary finding, according to the team’s research paper, is that tokenization serves the purpose of shifting ownership from initial equity holders to a platform’s users, but the tradeoff is that there’s no single entity that can subsidize network participation.


This evidently leaves the gates open for investors to treat purpose-driven DAOs like traditional stocks.


“The ability to get high returns has hurt cryptocurrencies as mediums for payment, because people don’t want to spend it,” said lead researcher Michael Sockin in a press release, “They can easily take us back to being like Amazons and Apples, which is the whole issue we were trying to move away from."# Blockchain# Study# Research# Decentralization# DAO# DeFiAdd reactionAdd reactionRelated NewsHow to create and sell Bitcoin NFTsThe economics of Bitcoin halving: Understanding the effects on price and market sentiment7 blockchain-based platforms for content creatorsCrypto needs better self-custody: This platform is solving itItaly’s central bank calls for framework to prevent stablecoin runsOver $204M lost to DeFi hacks and scams in Q2: Finance Redefined

News Feed

Stock Trader Dave Portnoy Dives Into Bitcoin, Only to Panic-Sell After Chainlink Plunges
Stock Trader Dave Portnoy Dives Into Bitcoin, Only to Panic-Sell After Chainlink PlungesHigh profile stock trader Dave Portnoy has panic sold his bitcoin one week after he got into
Bitmain Unveils 2 Bitcoin Miners With Max Speeds Up to 110TH/s Per Unit
Bitmain Unveils 2 Bitcoin Miners With Max Speeds Up to 110TH/s Per Unit On Thursday, the China-based mining rig manufacturer Bitmain announced the launch of two new Antminer S19
No Crypto Loans and Fewer Trading Options – Russian Finance Ministry Clarifies Regulatory Plan
No Crypto Loans and Fewer Trading Options – Russian Finance Ministry Clarifies Regulatory Plan Russian authorities are not going to allow cryptocurrency lending, the finance mini
Did Cardano Founder Steal $619 Million? Hopkinson Makes Shocking Revelation
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Andrew Singer10 hours agoUnited Kingdom’s digital pound meets public backlash — Why?The use of physical currency for transactions is plummeting globally, so why is the U.K. so tentative with its own central bank digi
XRP Will Hit $2.13 Before A Correction – Analyst Predicts Bullish Rally
Este artículo también está disponible en español. XRP is trading just below the critical $2 mark, a level that served as the local top during the 2021 bull cycle. The pri
New record: Bitcoin processes 1.6M confirmed payments in a day
Arijit Sarkar1 hour agoNew record: Bitcoin processes 1.6M confirmed payments in a dayThe launch of Bitcoin Runes played an important role in the spike in the total number of transactions over the Bitcoin network.1300 Tot
Bitcoin, Ethereum Technical Analysis: BTC Slips to 10-Month Low, Below $33,000
Bitcoin, Ethereum Technical Analysis: BTC Slips to 10-Month Low, Below $33,000 BTC fell to its lowest level since last July, as prices dropped below $33,000 to start the week. The
Ethereum’s firm $2,860 support signals path to $4,500 — Deribit
Josh O"Sullivan10 hours agoEthereum’s firm $2,860 support signals path to $4,500 — DeribitA Deribit report underscores Ethereum’s resilience at $2,860, pointing toward potential highs driven by recent ETF approvals
S&P Global joins Singapore's Project Guardian tokenization trials
Derek Andersen2 hours agoS&P Global joins Singapore"s Project Guardian tokenization trialsThe rating agency will provide its perspective on risk mitigation in tokenized fixed income transactions.395 Total views1 Tota
Biggest Movers: QNT Nears 6-Month High, DOGE Extends Recent Gains
Biggest Movers: QNT Nears 6-Month High, DOGE Extends Recent Gains Quant moved close to a six-month high on Saturday, as the token remained in the green for a second consecutive ses
UK closes ‘trust me bro’ crypto firm that gave horrible advice to clients
Brayden Lindrea8 hours agoUK closes ‘trust me bro’ crypto firm that gave horrible advice to clientsIt comes just two weeks after the Insolvency Service secured a winding-up order against Amey’s firm in the United K