Crypto Trader Highlights The Problems With DAOs In Crypto

Crypto Banter’s Ran Neuner believes that decentralized autonomous organizations (DAO) are a fundamental concern for the crypto industry, taking to Twitter to voice the same. As an internet-native organization, DAOs serve as a legal structure with no central authority where community members use smart contracts to make decisions and vote on proposals.

One of my biggest concerns in crypto is DAO’s. It’s a fundamental concern – Here is why;

Historically we know that decisions taken by a voting process have a high probability of being swayed towards the mass vote.

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— Ran Neuner (@cryptomanran) April 9, 2023

Ran Neuner, who is popular as a trader among crypto circles, recently took to Twitter to list his concerns with DAOs and their role in the crypto space. Neuner pointed out that it is difficult to sway the “average masses” toward a particular side of the spectrum when using the voting process associated with DAOs, which is used by members to decide on governance proposals.

According to Neuner, the idea that decisions taken by a voting process having a high probability of being swayed toward the mass vote is fading away in crypto due to DAOs. According to the crypto trader, the masses tend to fall in the center of the distribution curve, which means they tend to side with the average and render voting useless.

“This makes all decisions eventually average and slows any process and adds huge cost. This is a fundamental issue to all crypto and it concerns me about the future of this industry model,” the crypto trader tweeted.

Ran Neuner cited the ongoing DAO issue with the Ethereum layer 2 scaling solution Arbitrum, where the community has rallied against builders using the DAO over concerns surrounding the developers’ plans for the protocol. Neuner stated that the DAO has slowed down the decision-making process, in addition to making it expensive. Developers are busy tied up in a democratic process rather than building on the protocol.

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