CAN A DAO REALLY DIE ?
Well I’d really be happy to provide an answer to this question though it would be wise for us to go through the strength and weakness of a DAO, with that we’d be able to know if there would be a probability of a DAO’s death.
STRENGTH OF A DAO
What is a DAO? A DAO is a Decentralized Autonomous Organization the word autonomous means a DAO is not owned by anyone and it’s Independent. Being independent means there’s equal footing, neither a CEO or hierarchy exists and power is distributed and not centralized. Decision making and taking isn’t just done, every member around the world contributes and participates in the making of decisions. When there’s a new proposal, it’s brought to the board and DAO members to be cross checked properly if the decision will bring growth to the DAO or cause a fall. This singular act creates unity and brings prosperity to a DAO.
WEAKNESS OF A DAO
Being democratized and decentralized, DAO members abide by the opinions and decisions of the majority. It may get rid of manipulation, but there is still a risk of conspiracy. Conspiracy causes a bad type of competition and creates division & wherever there’s no unity, its 99% possible that a fall is near.
Hacking of a DAO is a major issue in the Web 3.0 and the crypto world, a DAO may die as a result of a hack case if it’s treasury is hacked. It may be hacked due to vulnerabilities in its code base. More specifically, computer scientists were concerned that a bug in a DAO’s wallet would allow them to be drained & exploited. While programmers attempted to fix the bug, attackers may take the case as an opportunity and then exploit the vulnerability to begin siphoning funds from the DAO. A case study is Badger DAO which reported to have lost $119 million as a result of a front end hack process carried out by a hacker using Metamask wallet to make illicit fund request from users in the DAO and other partners.
DAO’s can moreover die as a result of competition with another DAO, with the volume of DAO’s rising and competing for educated attention and mastery, a few DAO’s may battle to remain lively. In spite of the fact that what dies in a DAO is collective vision and the vitality of a community in interest of this vision.This isn’t fundamentally negative since DAO’s exist to fulfill a reason. Sometimes, they as it were got to exist for a limited sum of time. Other times, DAO’s fall flat and pass on, however they can re-emerge in modern appearances for the same objectives.