DAOs and the pitfalls of progressive decentralisation

For instance, app teams that pursue community ownership first (starting with a wide token distribution) risk engendering a community of speculators, rather than real users. Without a working product, ownership is worthless, and the community won’t stick. Many teams that have done this are unable to back into product/market fit, and as a resul

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Decentralisation should not come at the expense of efficiency in the long run. Progressive decentralisation enables an initial team to search for product market fit on its way toward credible neutrality. We will explore examples of DAOs doing this through constrained delegation and working groups, as well as the tools that provide additional layers... See more

---------PROTOCOL LEADERSHIP Kain Warwick, Synthetix's former "benevolent dictator," recently explained a problem arising from the decentralized governance of Synthetix. Warwick recalls stepping away from his de facto leadership position and leaving the Spartan Council, a democratically elected body that approved Synthetix protocol changes and was ... See more

While many crypto startups have successfully made their users into owners by following the Progressive Decentralization playbook, a number of founding teams feel compelled to step back from their projects at the time of token launch to reduce the risk that their tokens will be deemed securities. An alternative path may allow founders to stay involv... See more