Reality intrudes on a utopian crypto vision

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Community disputes have also caused prices to plummet at Wonderland DAO, whose founder was recently forced to reveal that the platform’s treasurer, known as Sifu, was a man named Michael Patryn. Mr Patryn has previously been convicted of financial crimes in the United States and Canada and was a co-founder of the failed Canadian cryptocurrency exchange QuadrigaCX, whose other founder’s mysterious death left suspicious law enforcement and customers spent around $135 million on crypto.

Among the topics debated since then on the Wonderland governance forum has been whether the DAO should dissolve or morph into something more like a conventional corporation by hiring “a team of professionals who have track records.” audited”, including financial, legal and operational directors.

The problems that have arisen often stem from the anonymous nature of DAOs and cryptocurrency.

This anonymity can undermine accountability and facilitate what critics call abuses of power, like at SushiSwap, where its creator, who goes by Chef Nomi, abruptly left the project, cashing in nearly $13 million in tokens amid internal struggles.

A developer who goes through OxMaki and was involved in starting SushiSwap told The New York Times in a Telegram chat that DAO’s strengths — diversity and decentralization — also turned out to be weaknesses.

“It was formed from a wild spectrum of people from all over the world with no relation to any parties. The vision and direction being different for each group. It was never entirely decided internally. Which was a mistake,” he wrote, adding that he had never met any other Sushi team members in person. (OxMaki, who calls himself an “anarcho-capitalist,” declined to divulge his real name.)

American CryptoFed calls itself the first legally sanctioned DAO in the United States. It was registered in Wyoming, which passed the first state law to officially recognize DAOs and exempt crypto tokens from state securities laws.

In September, it notified the SEC that it would create two new cryptocurrencies for payments and governance in its internal economy, both of which would first be distributed to the public, then bought, sold, and traded.

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