Despite the fact that DigixDAO is getting rid of its DAO part after the user vote, the COO and co-founder of Digix Shaun Dije explained that the platform will tackle new challenges and will even launch a new product in the near future so let’s read more in the latest cryptocurrency news.
The difficulties of managing traditional business models and applying to decentralized autonomous organizations as much as they do to the entire blockchain governance. Although DAOs are not mainstream in the blockchain space, they are becoming more prevalent thanks to the new project such as Gitcoin, MakerDAO, and MolochDAO. The DigixDAO was one of the first projects to arrive in the crypto space after a successful ICO cryptocurrency process in 2016.
The goal of the DAO was to encourage the growth of the projects that are commonly found in the Digix gold-backed DGX token using the funds from all the ETH coins stored in the DAO smart contract. However, DigixDAO is running into issues including the controversial governance mechanism launched in 2018 which rewarded the users for voting with the majority. Most recently, the members started expressing their unhappiness that there was no way to withdraw their funds and the problem led to the Digix team to devise ‘’Project Ragnorok’’ which is a quarterly vote where members could decide if they wanted to dissolve the DAO entirely.
58 members took part in the poll and the majority of them voted to invoke Project Ragnarok. The COO Shaun Dije commented on what exactly happened with DigixDAO and he commented:
“Like every other token project, I think it’s fair to say that the distribution curve of [DigixDAO’s DGD] tokens is quite skewed, in that the top ten to twenty owners will naturally hold weight over the entire supply system. So, in the context of a DAO, this means voting power isn’t equitably distributed.”
Dije explained quickly that there were no malicious actors and that the governance parameters functioned as they should so passing the project was a success:
“A reputation-based voting system means that smaller voters could gain more voting power over time. Even though you may not have as many tokens, [if] you’re able to amass influence and reputation in the ecosystem, it gives you a bigger weight. The entire thing could be driven on the blockchain using identifiers assigned to your wallet address.”
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