At the beginning of the week, the CEO of Aragon, Luis Cuende, presented a new governance proposal for the Ethereum network that consists in the creation of a DAO that manages the funds of the Ethereum Foundation. Members of the community have questioned this proposal, considering it unsafe, although Cuende considers that it has nothing to do with The DAO of 2016.
In the Aragon forum, the CEO published the details, as well as the template that EthDAO would use. According to the document, the organization would have the authority to administer the funds allocated to the development of the ecosystem and ultimately approve the implementation of the IEPs.
CriptoNoticias spoke with Luis Cuende, to learn more about this organization. In his opinion, the structure of EthDAO "has nothing similar" to the DAO, since the latter would have been rather a venture capital fund in the block chain, while EthDAO would be "a way of experiencing governance". in the chain (on-chain)" for Ethereum.
In May 2016, The DAO, a decentralized autonomous organization built on Ethereum, raised ETH 10.73 million in crowdfunding. Some experts were concerned about the security of the platform, through which users had the possibility to raise funds through smart contracts and benefit without the intervention of any authority. On June 17 of that year the concerns materialized, and 60 million ethers were stolen.
To solve this, the central team of developers of Ethereum proposed a strong bifurcation (hardfork) that invalidated the transactions and the hashes linked to the hacked funds. This generated discontent in a part of the community, which estimated that the measure proposed by Vitalik Buterin and his team was against the decentralization of the network. It was then when the dissatisfaction of a part of the community gave rise to a new chain called Ethereum Classic, which would keep the record of the hack in order to defend the immutability of the network.
Since then, the governance of the Ethereum network has been questioned, and there have been many proposals that have emerged to improve the direction of the project, without success so far. In February of this year, Moloch DAO, a decentralized autonomous organization was created to finance Ethereum 2.0. that would replace the Ethereum Community Fund.
Ameen Soleimani, CEO of Spankchain, is one of the supporters of Moloch DAO, and has questioned the security of the EthDAO protocol, without giving further details.
The CEO of Aragon, a project that owns around 0.25% of the total of ETH, did not mention the proposal of Moloch DAO when presenting EthDAO. Unlike Moloch, candidates for EthDAO grants should not make a deposit of 10 ETH to participate. Instead, a committee elected by the community would be in charge of approving the funds. With this, according to the CEO's publication, the current "tribalism" lived by the Ethereum government would be resolved.
To encourage voting, Cuende told CriptoNoticias that "the best thing is to educate". However, if this did not work "you could always turn to a committee voted annually by ETH holders, and the committee would make financing decisions on a daily basis."
According to Cuende, what is necessary for EthDAO to materialize is the "complacency of the community to experiment" and the Ethereum Foundation to provide funds to help this process. The CEO estimates that the budget for EthDAO would be all that the Ethereum Foundation owns now (figures that are not public) and that he estimates at about 100 million dollars in ETH.
Featured image by Tobias Alhelger / stock.adobe.com
