[Serious] Are Crypto DAOs little more than ICOs?

Crypto Decentralized Autonomous Organizations (DAO) seem to me to be little more than Initial Coin Offerings (ICO).

After bitcoin came around, there have been different ways to release and advertise new coins on the market for people to buy. First there was the ICO phase. Thousands and thousands of coins (commonly referred to as shitcoins) that have no purpose other than for people to buy them. Then came the NFT phase, which are really just coins that people associate with images. Now it seems the hot thing are DAOs. It looks like the main purpose of a DAO is to issue a coin, which them comes with “Voting Rights” that I doubt anyone will care about. So basically just another ICO.

Am I thinking about this right?

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11 thoughts on “[Serious] Are Crypto DAOs little more than ICOs?”

  1. A DAO is an organizational structure. A DAO does not need a token (many community and validator DAOs do not and gain their voting power by holding the blockchains coin). Some DAOs are essentially businesses that have their own token to get voting power.

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  2. They arent the same at all, a DAO is a whole organization. An ICO type event maybe performed by a DAO but it can also do so much more. Saying a DAO is an ICO is like saying the stock market is for IPO’s

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  3. A lot of new “decentralized” DAOs have the team own the majority of the supply so in those cases its basically just a glorified ICO, still even with full voting rights most current projects seem severely limited in what the community can do other than voting on yes/no questions from the team

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  5. It depends on how each DAO works. The only one I’m actively participating in DiaData Dao (Web3) and there is much more than voting rights. Some of the bounties I’m working on there are paid in Ethereum (I’m a Vyper programmer), so the community can contribute to the project itself (since it’s an open-source Oracle).

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  6. No they aren’t. The two are nothing alike. You’re thinking of coins linked to DAOs like Badger, but There are literally hundreds if not thousands of DAOs that don’t have coins. Just ask the Harmony team.

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  7. They generally come with the teams holding a majority. So they’re often little more than a “community” treasury that the devs have full control over to pilfer.

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  8. DAO and ICO they don’t depend on each other in theory. In practice though, yes a lot of them are just trash ICO rugpull

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  9. Most DAOs walk and quack like pump and dump schemes.

    The voting is pretty laughable in most cases, a tinkering at the edges to try to give the illusion of inclusiveness, assuming the DAO even bother with actual voting at all, or that there is strong and serious engagement with the holders on voting.

    What percentage of people actually buy a dao crypto to vote? No, it is more “X looks like it could become more popular, I will have some of that”.

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