Thomas Herd | May 15, 2021 | People
Despite the backlash faced in 2016 with the infamous DAO breach- in which investors suffered sudden and severe financial losses- the DAO is making its way back into the crypto and blockchain estabishment, as ushered back by some of the biggest pundits in the space.
A salient example of such a hardline DAO advocate is Tekin Salimi from Polychain Capital.
In recent years, Salimi and collagues have stuck behind the DAO, highlighting its continuing importance in registering data and enabling interoperable exchange on the blochain.
Specifically Salimi elucidates through vis a vis a the particularly cogent example of the DAO backbone of Polkadot : “
Gas prices and scalability concerns on Ethereum today are bottlenecks that have led many project founders to consider launching DAOs on other platforms. Polkadot is a great example of a platform that stands to win DAO market share. 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. 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 tokenholders.”
However, obviosuly DAO's are not restircted just to these applications
Beyond Polkadot, DAO's can serve as the foundation of many other platforms and be used for a litany of other purposes in the evolving blockchain.