According to this specialist, most DAOs are not what they seem

Key facts:
  • Wonderland CEO Matthias Nissenson questioned the DAO’s vote.

  • Ninesson said that most DAOs operate like a “laundry shop.”

Among the topics discussed during In ETH Latam, there are hacks, scams, and decentralized independent organizations known as DAOs. About them, they specifically talked about how these organizations are not what they seem, according to Matthias Nissenson, CEO of Wonderland, an activist fund that invests in projects without allocating protocols.

Nesson Directly targeting most DAO. “I really think that from the word DAO, the only letter that applies is an O for the organization. The rest are no. They are not decentralized or independent or anything like that.

It’s confirmed Based on your company’s experience with SushiSwap, which is a DeFi liquidity platform regulated under the DAO. “SushiSwap started as a really great story and then turned into a kind of death spiral due to mismanagement. SushiSwap bookings went from $1 billion to $20 million.”

A sample of “mismanagement” was exposed when the founder of SushiSwap sold all of his SUSHI tokens, causing an uproar, calling it an exit scam, but then returning the funds, as CriptoNoticias reported in 2020.

Matthias Nissen.
Matthias Nissen, CEO of Wonderland, explained how DAOs work and from his experience how they are not what they seem. Source: youtube.com.

In Ninesson’s view, this is how “the value of things is destroyed, claiming that protocols are decentralized and independent, but in reality they are not.”

Voting in sushi is not what it seems

another side Leaves doubts about some DAOs, it’s how decisions are voted on. Ninesson said that Wonderland made a presentation to SushiSwap titled “Fukkatsu: Make Sushi Great Again” last April. This offered to revamp Sushi DAO’s organizational and operating structure to make it profitable.

“And why do we say this? Because Soshi, at least two months ago, had only three or four developers. They had no executive team. No strategy. No business team. So there were only a few developers left.”

The The proposal received 51% of the votes in favour, was supposed to be approved by the majority of DAO members, but the story would be different. According to Ninesson, what “really happened and what happens in these kinds of decentralized organizations, is that only three people have decision-making power. So this is not a democracy.”

Under these circumstances “it is very difficult to propose a change and this happens in most DAOs, it is a kind of plutocracy where those with more money can approve projects. But having money does not make you smart and that is what happened with sushi.”

Ninesson concluded by saying that, like sushi, other multimillion-dollar DAOs operate like a “laundry or soup sale.” confirmed it Operations are bad, no one takes responsibility for things, and salaries are crazy A lot of other problems. “Anyone who gets into the DAO will see reality and won’t believe the way it’s being operated.”

 

 

 

 

 

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