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Thursday

26 November 2020

The word ‘decentralized’ has lost all meaning — Enough is enough

The word ‘decentralized’ has lost all meaning — Enough is enough


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We live in a world where DAOs aren’t DAOs, where independent validators aren’t independent, and where PR departments breezily gloss over the fact that some blockchain projects are far more centralized than they may seem.

Emotionally and financially, countless crypto enthusiasts have bought into decentralized projects — full of belief that these platforms will bring about change and hopeful that they could make a lasting contribution that would make the world a better place.

An “immense proportion” of the total supply of UNI tokens, 40% to be exact, has been allocated to the platform’s teams and investors, and the only entity with enough UNI to submit a governance proposal is Binance, a centralized rival.

Back then, pro-democracy protesters — who were mostly young, secular and “connected” — put their faith in social media platforms and messaging apps, believing they were decentralized enough to give them a fair hearing and an accurate view of what was happening in Egypt.

Internet service providers handed over user data to the government, Facebook admins and posters lost their freedom, and some lost more than that.

The only way to do this is by hardwiring the principle of decentralization into the blockchain itself… from day one.

Crypto enthusiasts have had to manage their expectations and make do with the downsides of current governance models.

This would ensure that everyonein the community can have their say in how funds are distributed — creating a meritocracy where tokens are awarded based on talent, not connections.

And when an individual stakes tokens with a validator, this can mean that they’re forfeiting the right to vote how they please, as the validator will make decisions on their behalf.

But what if all these individuals retained their voting rights during the staking process, preventing power from being concentrated into the hands of a few.

Sub-governance groups are key here, as they can give individuals the freedom to build their experience and reputation in the areas they enjoy most.

Once people see that a successful combination of decentralized governance and decentralized money is possible, there will be no going back — and blockchains that merely have the veneer of decentralization will have tough questions to answer

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