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@ 𝕞𝕪𝕡𝕒𝕥𝕙𝕥𝕠𝕗𝕚𝕣𝕖
2024-07-22 15:56:41
https://image.nostr.build/bde258ff45b8017e3ce76aa733718beb302bea7a4b7fe9aff7ff3af1e788baab.png
Pretty much all of the alternative crypto tokens to Bitcoin seem to have DAOs or insiders have managed to pre-mine themselves some extra tokens to give themselves an advantage.
The bad thing about DAOs are that they are used to enrich insiders at the expense of token holders. Many may claim you can vote how they are spent based on your stake or other such *democracy*, but in reality, token distribution or other such mechanisms have been put in place to rig a fair distribution.
We can see even with OpenSats that many supported projects stop a year later without any passion and commitment from the Devs. But at least these projects are not funded at the behest of existing Bitcoin holders. They require an honest funding mechanism.
It seems at some point or another, the DAOs will get drained and in the name of the community. Even if you as part of the community disagree with the spending, there is nothing much you can do to stop it.
Some chains may do scheduled unlocks to the insiders to gradually drain away value from token holders. You may ask yourself, why should they get this reward at your expense? The answer is often they have been early investors and taken the risk.
This isn't exactly true because the early adopters of this tech were on Bitcoin and they have already made bank. The new tokens are just fresh money grabs often without providing any utility.
Why store any value in these tokens if they are just money grabs and will not hold value over the long term against Bitcoin. High time preference people are those usually chasing the short term gains instead of thinking longer term.