Bankless controversy forces founders to burn tokens and separate from DAO
Hoffman and Adams decision to different Bankless from BanklessDAO came in action to neighborhood criticism of BanklessDAOs application for a grant from Arbitrum.” The issue is that BanklessDAO would not be able to make such enthusiastic propositions without leveraging the weight of the Bankless brand name, which they did not produce, is not theirs, and ought not to benefit from,” Hoffman wrote.The BanklessDAO neighborhood was quick to criticize the effort, with lots of DAO members pointing out that the proposal requested practically two million ARB for composing material without supplying in-depth information about how the cash would be spent. In reaction, BanklessDAO dedicated to modifying the proposal to cut the one-year grant to 3 months and supply clear crucial performance indicators and milestones.BanklessDAOs education and onboarding project for Arbitrum.
Founded in 2019, Bankless is a crypto media company that promotes the adoption and awareness of bankless cash systems. In May 2021, Bankless introduced Bankless DAO– a decentralized community to coordinate and promote bankless media– and introduced the BANK token.In April 2023, Bankless founders revealed they were raising a $35 million equity capital fund to purchase seed-stage Web3 business. Publication: Are DAOs overhyped and unworkable? Lessons from the front lines
In the middle of the ongoing debate around cryptocurrency media Bankless and the associated decentralized autonomous organization (DAO), BanklessDAO, the creators of Bankless have actually recommended separating the brand name from the DAO.Bankless co-founders David Hoffman and Ryan Sean Adams strategy to send a governance proposition to BanklessDAO to separate the two entities.” The issue is that BanklessDAO would not be able to make such enthusiastic proposals without leveraging the weight of the Bankless brand name, which they did not produce, is not theirs, and ought not to benefit from,” Hoffman wrote.The BanklessDAO community was fast to criticize the effort, with numerous DAO members pointing out that the proposal asked for nearly two million ARB for writing content without offering detailed details about how the money would be invested. Established in 2019, Bankless is a crypto media company that promotes the adoption and awareness of bankless cash systems.
In the middle of the continuous controversy around cryptocurrency media Bankless and the associated decentralized self-governing company (DAO), BanklessDAO, the founders of Bankless have recommended separating the brand name from the DAO.Bankless co-founders David Hoffman and Ryan Sean Adams strategy to submit a governance proposal to BanklessDAO to separate the two entities. I hold Bankless very dear, and Ive got a natural reflex to protect it when I see it being unfairly assaulted.
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What led to the Bankless controversy that forced founders to burn tokens and separate from DAO?
The controversy arose from criticism within the BanklessDAO community regarding a grant proposal submitted to Arbitrum, which sought nearly two million ARB for content creation without sufficient details on fund allocation. Founders David Hoffman and Ryan Sean Adams felt that BanklessDAO was improperly leveraging the Bankless brand, which they created, to make ambitious proposals. This prompted their decision to propose a separation between Bankless and BanklessDAO, aiming to clarify the ownership and use of the brand.
How did the BanklessDAO community react to the founders' proposal to separate from DAO?
The BanklessDAO community responded swiftly with criticism, highlighting concerns about the lack of transparency in the grant proposal. Many members pointed out that the request for funds did not provide adequate information on how the money would be spent, leading to distrust. In light of this feedback, BanklessDAO committed to revising the proposal to shorten the grant duration and include clear performance indicators and milestones.
What implications does the separation of Bankless from BanklessDAO have for the future of both entities?
The separation could redefine the operational dynamics of both Bankless and BanklessDAO, allowing each to pursue their respective goals without brand-related conflicts. For Bankless, it may mean focusing on media and education initiatives independently, while BanklessDAO can work on decentralized governance without relying on the established brand's reputation. This move aims to foster a more transparent and accountable environment for both parties moving forward.
What actions did BanklessDAO take in response to the controversy surrounding the grant proposal?
In response to the backlash over the grant proposal, BanklessDAO pledged to revise its approach by shortening the proposed funding period from one year to three months. Additionally, they committed to providing clearer key performance indicators and milestones to ensure accountability in how funds would be utilized. This adjustment reflects an effort to rebuild trust within the community and address concerns about financial transparency.