Kelvin Koh, co-founder of Spartan Capital, tweeted today that he would stop investing in DAO because many people are using it to evade legal responsibility; Maker DAO angel investor Hasu also said that DAO still has many huge flaws, holders and managers There is a conflict of interest, and the principle of maximizing the interests of the governance token should be established, and Larry Cermak, vice president of research at The Block, agrees. (Recap:Is Web3 Decentralization Fake? Chainalysis: Most DAOs have 90% voting power held by the top 1% members) (background supplement:Bank of America Enters Stablecoin DAI? MakerDAO proposal to use HVBank trust as collateral, temporarily supported by 66.4%)
Kelvin Koh, co-founder of investment firm Spartan Capital, tweeted today (22) that he will stop investing in decentralized organizations (DAOs) because many company founders are using the structure of DAOs to evade legal rules, and he also Retweet the Maker DAO Angel Investor Tweet.
I’ve stopped investing in DAOs, and more and more founders use this structure to avoid legal liability, but still get involved.
I have stopped investing in DAOs for now. Increasingly seeing founders exploit the structure to avoid legal liability and accountability but still participating in the upside. https://t.co/yIsLxl6SZ5
— SpartanBlack (@SpartanBlack_1) July 22, 2022
Hasu, an angel investor in Maker DAO, also said in the post that he must convince himself that before major changes in the system and regulation occur, he believes that DAO is not investable, and the post was also questioned by netizens as to what to expect. What changes, Hasu briefly answered that the current DAO situation needs to be improved in the following points:
Holder/manager should be separated and accountable to the real organization holder (original, shareholder, but this should be governance token holder) Governance should explicitly maximize the value of the organization (governance token) holder Need for clear regulations
– owner/manager separation with accountability to shareholders – explicit mandate of maximizing shareholder value – regulatory clarity https://t.co/ZIIkv8mc4u
— Hasu⚡️🤖 (is hiring! jobs.flashbots.net) (@hasufl) July 21, 2022
Hasu also stated that he is also making suggestions with MakerDAO on this principle. On June 30, Hasu stated that MakerDAO’s governance lacks foresight, and MakerDAO’s current organizational structure is inconsistently implemented, which makes Maker holders continue to divide. He believes that it should be Create a board of directors dominated by Maker holders, with the power to fire or hire anyone, and implement the principle of governance token holders being the greatest.
I just proposed a series of simple governance changes to @MakerDAO that would address many problems that exist in governance today. These include a general lack of vision and strategy as well as low accountability to MKR holders. https://t.co/2v0ThuEvHw
— Hasu⚡️🤖 (is hiring! jobs.flashbots.net) (@hasufl) June 29, 2022
Larry Cermak, VP of research at The Block, agreed in the post:
More and more I think the best token model is to have a pseudo-anonymous founder (whose appearance is unknown, but not completely anonymous) and an income-generating token economy, where token holders only decide how to allocate their funds , but the core parameters of the protocol will be determined by the core team.
– Larry Cermak
I increasingly think the optimal tokens will have pseudo-anonymous founders and revenue generating tokens where the token holders only make decisions about how treasury is allocated. Protocol parameters would be decided by core team
— Larry Cermak (@lawmaster) July 21, 2022
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