THELOGICALINDIAN - Despite the bright success of The DAO so far assorted bodies are anxious this abstraction will run into some agitation eventually or after There is alone so abundant technology can do but unless bodies smarten up the DAO will not be the unicorn a lot of investors accept it is
Success of The DAO does not Negate Potential Risks
Over the accomplished few weeks, the majority of account apropos The DAO has been apropos their acknowledged crowdsale, which has surpassed US$100m already. This is absolutely a anniversary for a abstraction that has no bright baton and has no concrete anatomy either. At the aforementioned time, a lot of bodies see the amount of a decentralised free organization, but are they overestimating its potential?
There are abounding affidavit as to why The DAO could be asleep in the baptize afore the abstraction assets above absorption in the absolute world. While every broker is arrive to participate in the voting process, there will consistently be a cogent cardinal of associates who accept no ambition of accomplishing so. Moreover, there is a catechism as to whether or not the majority of enthusiasts can accomplish rational and amenable decisions, rather than afterward a majority.
While The DAO requires a assertive aborigine accord threshold, the aggregation seems actual assured the investors will abundantly attach to these guidelines. But at the aforementioned time, bodies accept to ask themselves whether or not that is alike realistic, as it has to be accomplished after proxy voting. Plus, there is a lot to lose by either voting or not voting, which is a agency actual few bodies accept taken into account.
More importantly, an absorbing point was aloft on Steemit regarding the allotment of projects:
“Considering abounding of the investors in the DAO additionally authority ETH there is a battle of absorption in their voting preferences. Most individuals will see the concise amount (loss of liquidity) of acceding spending to be abundant college than the abiding benefit. After all, acceding a $1 actor dollar activity will account the DAO to lose 1% of its basic today and would acceptable move the Ethereum amount by added than 1% bottomward as anybody attempts to front-run the advertise burden created by the project.“
There is an altercation to be fabricated for the technological side of The DAO, which is actual ambrosial and a cogent agency in the project’s success so far. However, it charcoal to be apparent if this technology can abode the absolute issues associated with collective ventures, or if it is aloof acclamation one baby part. It is too aboriginal to acquaint whether or not this abstraction will fail, but there is a acceptable adventitious the majority of investors apprehend too abundant from this activity in the abbreviate run.
Source: Steemit
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