Investing in DAO is like Investing in a Fund Run by US Type Political System

A decentralized autonomous organization, sometimes called a decentralized autonomous corporation, is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government.

Ran NeuNer shared: I really don’t see the value in investing in a DAO. The tech is great, but it feels like investing in a “fund” run by the US-type political system. Inevitably you will disagree with the decisions of the DAO for a large portion of the time & believe you could make better decisions.

Ran NeuNer is the host of CNBC Crypto Trader.

Community Response:  Perhaps, we need classes of tokens, which dictate the voting weight. That way, those who are best skilled can drive the majority of decisions, not too dissimilar to what a board can do. The board can be voted in by the rest of the token holders

Heard of quadratics? Apart from time “in token” everything else weights towards Whales and VCs looking for arbitrage. How good will this space be when we’ve all walked a few baptisms of

The key value with web3 is being able to analyze the businesses model down to the transaction level. Pure transparency, if the business model is performing. Further, receiving dividends in real-time is directly linked to the success of the business model + control over dilution

Highly disagree. Whereas in the US political system it’s nearly impossible to make changes to the overall architecture.  We have seen numerous instances where DAOs have entirely changed the course of their roadmap, because of a community vote.

Time to think from the perspective of someone who doesn’t spend their time researching investments. Maybe they want to find someone they trust to do the research for them. (I know it sounds crazy). Keep your ethics and start a DAO.

Facts:  Not all projects / startups need to be DAOs. It causes more confusion on the long run, but what do I know?

Ebbsfleet United was a football club run like a DAO before DAOs existed as a concept. I think everyone got bored and wanted professionals to run it. Collective decision making isn’t optimal.

Yeah, I mean they typically are less effective for scammers and people intent on advancing their own monetary position at the expense of everyone else regardless of the circumstances, so I can understand why you’re not keen on them

A DAO is a decentralized automatic organization. By definition a true DAO is run by democratic voting, so why would most people disagree with what they vote for? Are you talking about OHM forks that adopt the title ‘DAO’?

It is the Mutual Fund of Crypto.  Good for people who cannot understand Finance or cannot invest the amount of time needed to identify opportunities on the horizon.

Ran your missing the big picture, projects like Links DAO are now possible to everyone. A group of people who love golf are now able to buy a golf course. They are bound to be scams, but the idea is revolutionary. Projects like this are no longer ONLY for the ultra rich.

I’m also part of a DAO for a game, which launched and is using the DAO as a governance reward to ensure that the game token complies with US laws and isn’t considered a security. I will say the popular ones are stupid, maybe even scams, but there are some great ones which have purpose.

Well, you didn’t find a good DAO, and to be honest those who are running DAO projects now days, they don’t even know what is DAO. Everyone is here just for cash grab. Give it 2-3 years.

Ran I am not salty bru but why do you flip flop so much? One moment you say DAOs and Daniele’s Frog Nation are the narrative to follow. Next moment you don’t see a value in a DAO. Which one is it?

Don’t like investing in DAO’s either. Unless you’re a whale, your vote doesn’t matter. No different than being a shareholder in the stock market, except DAO’s are worse since they’re not even regulated

Well, it would depend on the people making up the DAO. It’s been studied and the data shows groups make better decisions than individuals and the determining factor is how well they cooperate. DAOs usually agree on the what, but sometimes the how can vary greatly. They’re worth it.