Web3 Crypto and DAOs Purported as Decentralization Theater by Tezos Co-founder

• A reliable report notes that there are approximately 50k active addresses on Tezos.

Kathleen Breitman, the co-founder of Tezos, states that several Decentralized Autonomous Organisation reminds her of middle school. 

Kathleen quotes in an interview with a crypto media outlet that “The way I see most of these DAOs fail, it’s like they basically act as a really crappy school project,” she also added, “When I was in middle school, I was always the person who wound up doing the work in the school project, so I’m very sensitive to this dynamic.” 

Kathleen believes DAO can ultimately delegate into a single entity with a more considerable stake in the decision-making process than its peers. Voting is an aspect of the DAOs function but identifying a measure that is agreed upon is just as important. 

“If you don’t have any way to algorithmically or programmatically enforce the decisions made by the group, you’re gonna wind up just trading in one gregarious character for another,” Kathleen added. “That’s not a way to govern anything.”

A decentralized Autonomous Organisation is a flat business infrastructure developed on blockchain technology that lets individuals come together to make conclusions using smart contracts. 

Although they are sometimes defined as “group chats with bank accounts,” Breitman acknowledges the governance process of several Web3 projects can often be lackluster. 

Kathleen highlighted, “A lot of blockchains and DAOs are run like suggestion boxes.” Breitman believes that the decentralisation of banking into Web3 projects infrastructure is key to its longevity.  

 Breitman said, “Because there actually is a consequence to your vote, and it’s not just a suggestion box, people are automatically empowered,” she added, “I think it’s that empowerment that really leads people to engage in the process.”  

According to CoinMarketCap, while writing this article, Tezos is trading at $1.02 with a 24-hour trading volume of $13,223,308.50. It is also noted that according to market capitalization, Tezos ranked in the 46th position in the crypto market. 

It is important to note that the all-time high trading price of Tezos was  $9.18(In 2021), and the all-time lowest trading prices were below one dollar, nearly $0.3146. 

Kathleen also believes that Web3 is engaged in “decentralisation theater.”  

She concluded by noting that “We’ve had a lot of tourists in this space who have launched different tokens, and then they have these really aggressive programs that give high yields for people to participate in these ecosystems,”  “And at some point … the money box goes out because momentum stops building up.” 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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