12.6 C
New York

Ethereum founder against transferable governance, how did the community respond?

Published:

Vitalik Buterin claims that supporting DAOs using transferable governance tokens is contradictory and enables the power hungry. 

The debate over transferable governance continues with DAO spiking in popularity on the blockchain stage. Vilalik Buterin, Ethereum founder, gave his thoughts on a thread he posted on Twitter against transferable governance. 

He highlighted some key notes on his thoughts arguing that transferable governance tokens in DAOs contradicts the point of DAOs. He went on to say that if governance can be transferred, those who seek power will be enabled. 

Despite many in the community think it was a valid point by Buterik, some had combative opinions. Twitter user Muki pointed out that the delegation of decision power is an inevitable course of action on the grounds that not everyone could be expected to participate. He argues that because of this, voluntary delegation of decision power is better than the possible uninformed decisions of those, or lack thereof, who are unwilling to participate. 

User, Willyogo, tweeted that the holding of transferable governance tokens does not mean that people will gravitate toward the power. However, the user also said that there will definitely be room for improvement for DAOs.

Another user by the name of Vagabond said that having fully recallable delages is the way forward. With this idea, delegates could instantly lose their authority when they stop representing those who delegated votes to them. 

While governance mechanics were the focus of many, others point out the use of blockchain technologies in picking important positions in a DAO using verifiable randomness. This community member suggested that random selection of token holders and the rotating of selectees who are inactive is the best way to manage it. 

Related articles

Recent articles