HomeUncategorizedDAOs are meant to be completely autonomous and decentralized, but are they? By Cointelegraph

DAOs are meant to be completely autonomous and decentralized, but are they? By Cointelegraph

February 6, 2022

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While the organizational structure of a decentralized autonomous organization (DAO) is fundamentally meant to be “decentralized,” some of the biggest DAO protocols including are not. A lot of the day-to-day activities within DAOs still involve a few core members of the organizations to make major decisions. This raises the question as to whether DAOs are completely decentralized. And, if not, is complete decentralization even possible?

More broadly, DAOs can be compared to how democratic nations are run. While the ideology is to have decisions for the country made by the people, it’s mainly governed by a few powerful individuals who hold most of the license to determine laws and control decisions. Also similar to large organizations, shareholders are allowed to vote but the key policies are determined by the board of directors.

Kevin Tai is the co-founder and team lead of Linear Finance, a decentralized synthetic asset trading platform. A Harvard Business School alumni, Kevin started his career in Silicon Valley after which he spent the last 13+ years working in Asia for some of the top financial institutions in the world including Standard Chartered (OTC:), BNP Paribas (OTC:), Credit Suisse (SIX:) and Mirae Asset Global Investments.