Kash Dhanda, chief working officer of the Solana-based Jupiter decentralized trade (DEX), stated the protocol will pause governance voting.
In a prolonged Thursday announcement, Dhanda stated Jupiter “stands on the fringe of an inflection level” and “the window to outline the way forward for DeFi is open, however it received’t keep open for lengthy.”
Dhanda highlighted the necessity to “be laser-focused on progress,” and stated Jupiter was suspending the decentralized autonomous group (DAO) construction, which he stated “isn’t working as meant.”
Dhanda stated that DAO votes can be paused till 2026, when it can return “with a contemporary method that unifies, fairly than divides.” He claimed that the DAO is “caught in a detrimental suggestions loop,” slowing execution and creating division in the neighborhood.
Suspending DAO voting “will allow us to all deal with execution, pace, and progress whereas we rethink how the DAO might greatest function.”
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DAO paused to prioritize execution
Dhanda stated the suspension of DAO voting won’t have an effect on lively staking rewards, and all beforehand funded work teams will stay operational. Nonetheless, no new proposals can be accepted, and the neighborhood reserve will stay untouched till voting resumes. The event crew will fund neighborhood progress with its personal operational treasury.
DAO voting will resume subsequent yr after Jupiter’s crew defines a brand new course of by way of neighborhood engagement. The target is to discover a extra productive method. Dhanda added:
“To repeat: this isn’t an finish to governance, however fairly a pause.“
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Follows rising DAO governance backlash
The selection follows Yuga Labs pushing to overtake the ApeCoin ecosystem with a proposal to close down the ApeCoin DAO earlier this month. Somewhat than a pause, this proposal aimed to switch it with a brand new entity known as ApeCo, with the agency’s CEO, Greg Solano, claiming that the DAO has grow to be dysfunctional.
Solano, very similar to Dhanda, lamented that the DAO slowed growth and “devolved into sluggish, noisy and infrequently unserious governance theater.” He concluded that “too many assets have gone to vainness proposals and low-impact initiatives.”
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