Vitalik Buterin suggests that DeFi platforms choose a differen | Best Crypto Traders Official

Vitalik Buterin suggests that DeFi platforms choose a different DAO path

The emergence of Ethereum led to the emergence of a decentralized form of business, called DAO, where the principle of joint stock companies operated. Each token gave the owner a vote on any changes in the operation of the smart contract. The application of DAO principles, along with the issuance of service cryptocurrency in the form of yields, were the main drivers of the Defi industry.

Harvest tokens stimulated an influx of speculative farmers interested in selling them to increase investment returns. The demand for service cryptocurrency was provided by investors interested in buying up votes to control the project.

According to Vitalik Buterin, over time, DAO tokens became a vulnerability of any DeFi-protocol, becoming the subject of raiding or investment mistakes.