Decentralized autonomous organization (DAO) is becoming a major concern for the crypto industry, according to crypto trader Ran Neuner, who recently took to Twitter to voice his thoughts. DAOs are internet-native organizations with no central authority, where the members use smart contracts to make decisions and vote on proposals. Neuner is worried that the voting process associated with DAOs could be potentially swayed towards the majority, which could make the outcome average and slow down the whole process while adding costly expenses.

His concern was further exemplified by Arbitrum, a layer 2 Ethereum scaling solution, where the ongoing DAO issue has tied up the developers in a democratic process rather than building on the protocol. This delayed the progress of the protocol and made it costly. Neuner believes that this problem could affect the entire crypto industry.

The use of digital voting associated with DAOs could be potentially prejudice by the majority, as most people tend to side with the majority or average instead of taking a firm stance. This could result in a slow and costly process that could challenge the industry as a whole. To prevent this, DAOs should tighten their voting policies and rules, as well as strengthen their voting systems to ensure representation that meets its proposals.

Despite of being a beneficial tool for the blockchain, DAOs pose a threat to the industry if not taken seriously. Ran Neuner's voiced concern is a reminder to practitioners and users that DAOs need to be properly managed and analyzed in order to maintain their integrity and progress.



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