Anyone in the cyrpto world knows that a massive backlash ensued after a rupture in the DAO business model that made it possible for users to siphon off very significant amounts of the funds invested into Ethereum at that point.
However, what most of the crypto world do not know is how relevant, and even pivotal, the DAO model has been and still is to this day for its role in evolving blockchain applications and markets.
One notable expert in the field, crypto investor and fintech leader Tekin Salimi, has led a movement within the space to prudently reexamine the merits of the DAO model.
“Gas prices and scalability concerns on Ethereum today are bottlenecks that have led many project founders to consider launching DAOs on other platforms,” explains Salimi. “Polkadot is a great example of a platform that stands to win the DAO market share.”
Polkadot functions as a blockchain platform that connects private and consortium chains, public and permissionless networks and so forth that have yet to be created in a single, interoperable system. Without the DAO foundation in place, such a platform couldn’t exist and benefit users in the novel way that it does.
“Through utilizing Parity’s Substrate framework, a project founder can now launch a DAO chain that is natively interoperable with all other Substrate-based blockchains,” says Salimi. “This DAO chain can also participate in Polkadot’s parachain auctions to become an elected parachain and effectively piggy-back off of Polkadot’s consensus security. The value proposition of a platform like Polkadot is through reducing the surface area of issues that a DAO founder needs to worry about, so the founder can focus fundamentally on building a valuable economic model for the DAO’s token holders.”
Polkadot is just a single case study that highlights the sustained merit of the DAO model. In fact, DAOs can serve as the foundation of different platforms and be ultilised for a large variety of other applications that help today’s financial markets lessen their dependency on third-party “middlemen” institutions.