Kash Dhanda, chief operating officer of the Solana-based Jupiter decentralized exchange (DEX), said the protocol will pause governance voting.In a lengthy Thursday announcement, Dhanda said Jupiter stands at the edge of an inflection point and the window to define the future of DeFi is open, but it wont stay open for long.
Dhanda highlighted the need to be laser-focused on growth, and said Jupiter was suspending the decentralized autonomous organization (DAO) structure, which he said isnt working as intended.Dhanda said that DAO votes will be paused until 2026, when it will return with a fresh approach that unifies, rather than divides.
He claimed that the DAO is stuck in a negative feedback loop, slowing execution and creating division in the community.Suspending DAO voting will let us all focus on execution, speed, and growth while we rethink how the DAO could best operate.Source: JupiterKeybi, a creator behind non-fungible token project Persona, wrote in an Xpostthat despite being a JUP staker and religiously voting in its DAO, she approves of the decision that she thinks will be beneficial in the long run.
She added that focusing on the product is good also and I wish it will reflect to the price.Related: Crypto lobby group says SEC should back off regulating most DAOsDAO paused to prioritize executionDhanda said the suspension of DAO voting will not affect active staking rewards, and all previously funded work groups will remain operational.
However, no new proposals will be accepted, and the community reserve will remain untouched until voting resumes.
The development team will fund community growth with its own operational treasury.DAO voting will resume next year after Jupiters team defines a new process through community engagement.
The objective is to find a more productive approach.
Dhanda added:To repeat: this is not an end to governance, but rather a pause.Related: Research DAO claims paralyzed rats recover after spinal cord fixFollows growing DAO governance backlashThe choice follows Yuga Labs pushing to overhaul the ApeCoin ecosystem with a proposal to shut down the ApeCoin DAO earlier this month.
Rather than a pause, this proposal aimed to replace it with a new entity called ApeCo, with the firms CEO, Greg Solano, claiming that the DAO has become dysfunctional.Solano, much like Dhanda, lamented that the DAO slowed development and devolved into sluggish, noisy and often unserious governance theater.
He concluded that too many resources have gone to vanity proposals and low-impact initiatives.Magazine: Are DAOs overhyped and unworkable? Lessons from the front lines