VET News: VeChain CEO Sunny Lu Unveils VeBetterDAO Vision and DAO Future in Exclusive Interview
In a recent episode of Untangling Web3, VeChain CEO Sunny Lu discussed the growing role of decentralized autonomous organizations (DAOs) in blockchain technology while sharing insights on the future of cryptocurrency and blockchain adoption. Lu also highlighted how DAOs are decentralizing the decision-making process through the voting process rather than the conventional management hierarchy.
According to Sunny Lu, the DAOs are a new form of organization based on the principles of decentralization, including governance. While in the conventional economy, decision-making power is vested in the management, the DAOs incorporate democratic voting systems where all members have a voice and a chance to make decisions. Lu was able to simplify this rather abstract idea by comparing voting to a family’s decision-making process in which everyone has a say.
Smart contracts are widely used in DAOs to automate the execution of rules and conditions. The implementation of these smart contracts is done through blockchain technology to enable accountability for all actions. Lu pointed out that the decentralized voting system eliminates rigging and governance tokens are employed to cast votes within the DAO.
Oracles also play a crucial role, connecting the DAO’s virtual world with real-world data and allowing for informed decision-making.
Lu Highlights Decentralization as Key Benefit of DAOs
According to Lu, one of the primary benefits of DAOs is the capability of decentralization. He explained that DAOs remove conventional barriers where organizations can function round the clock with no single point of contact. In DAOs, every transaction and decision made is documented on the blockchain, which means that there is no secrecy.
However, Lu also noted that DAOs have some major disadvantages, including issues with their efficiency and the necessity to employ specialists.
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