Panda DAO put to a vote the question of closing the project

The decentralized autonomous organization Panda DAO has announced a possible termination of activities due to problems with the internal management of the project and the lack of sufficient funding.

Decentralized Autonomous Organizations (DAOs) offer a specific project or company management model that distributes voting rights among all community members. Thus, the entire DAO team is involved in making management decisions.

While this sounds right in theory, in practice this management model can be a significant problem. Especially if the DAO voting system is built around tokens. Such a system may lead to a hostile takeover of the project by the DAO “whales”, or a certain part of the community may “push through” a profitable proposal for itself.

Obviously, Panda DAO faced similar problems, and this forced the development team to put the question of closing the project to a vote. Commenting on their proposal, they explainedthat, over time, the unification of voices and the development of effective solutions became impossible.

“One faction of the DAO wanted developers to focus on low-risk, short-term returns, such as token buybacks. Another faction wanted to make a long-term profit, refuse all ransoms and accumulate money in the treasury,” one of the members of the development team under the pseudonym Panda tweeted.

He said that during the past year, dialogues between developers and users of Panda DAO almost always led to disagreements:

“We had a vision of how the project should develop, but our users insisted on their decisions so that we would develop the Panda application or form a venture capital division. They also forgot that developers don’t work for free, and I don’t think any of them understand how to survive in a long bear market.”

If the majority of the participants vote to close the project, the development team plans to remove the PANDA token from the Uniswap exchange, publish the open source code of the project, and close all Panda DAO social networks. Also between investors will be distributed from 500 to 700 million PANDA from 1.292 billion tokens in circulation.

The internal governance crisis is not the only problem threatening the life of the DAO. Recently, the New Free DAO project was subjected to several instant loan attacks, after which the NFD token rate collapsed by 99%.