No doubt, DAO is a huge jump in technology and there are plenty of benefits of DAO (Decentralized Autonomous Organization), but as they say “ Every coin has two sides”.
Yes, you read that right. There are also some limitations of DAO that one must be aware of. To help you gain more insights about the same, we spoke to an expert from Starapple (a leading DAO based in the USA). So, here’s a review of the discussion we had with the Star Apple team. Take a look:
What are the limitations of DAO?
PR: yes, there are some limitations of DAO, that can create chaos for you, but luckily, they are manageable.
Education
Managers of a DAO may come from different educational backgrounds, and have varying understandings of company initiatives and resources as opposed to one person who is well versed in all actions. Consequently, it’s hard to guarantee that everyone will work together or even know what’s going on overall with the organization.
Speed
When a single CEO leads a public corporation, they must take all decisions into account. However, with every user having an opportunity to vote in DAOs, there is more than just one opinion needed for certain actions or courses of action which can lead to long voting processes especially when time zones and priorities outside their own job responsibilities are considered.
Inefficiency
The efficiency of the DAO business model can be inefficient because it requires time to educate voters, communicate objectives and explain methods administratively. The more people that are involved with an organization or project which has aDAOs in charge; these entities may spend too much energy arguing about how things should change instead of actually implementing them- this leads some experts to call into question whether they’re really ready for prime diffusion!
Security
Blockchain technology is the future, but it comes with security concerns. Blockchain-based businesses need to ensure that their systems can always operate properly and without anything going wrong – both in theory as well as during actual use cases for customers!
Well, these are the limitations of DAO, so, what do you think, will you not enter DAO?
Of course not like that, every lock has a key, right?
If you choose the best DAO for your business, then this limitation will pass without touching you, and don’t go to the market to find the best DAO, because it’s in front of you at this moment.
Yes, of course, you are thinking right, it’s Starapplemna.
However, this was a minute part of the treasure of information that star apple is supposed to give you, if you want every diamond of it, stay tuned with us by following us on social media.
