DAOs Are Going To Really Drive Governments Nuts

There is a major situation brewing where governments are trying to reign in cryptocurrency. They naturally see it as their place to take control of whatever rolls out. Yet, they are now confronting something that is going to overwhelm them.

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We are not going to see things unfold as governments plan. The nature of cryptocurrency and how it was designed is going to inevitably lead to their downfall. Things are branching out in ways that most of them cannot even grasp.

Simply put, this train is moving too fast.

DAOs: Government Destroyers

Bitcoin was established to be both out of the reach of governments and exempt from competition from corporations. This presents a problem for the two most powerful institutions on the planet right now.

The distributed nature of Bitcoin means that it was created with no single point of failure. Over the last 12 years, the network spread out to make this true. The reality is they cannot control Bitcoin, nor can they shut it down. Even a country like China going after all the miners presented nothing more than a slight bump in the road. In actuality, it most likely helped the network since hashrate was concentrated in that area.

This concept that Satoshi introduced is now being replicated in what is being called the Decentralized Autonomous Organization (DAO). Here we see an organization that is designed to have no single point of failure.

Personally, this is a concept that is going to take off during this decades and it will drive governments nuts. They will do all they can to try and control them yet will fail. Just like with Bitcoin, the model is being proven to be insurmountable.

Even SEC Commission Hester Pierce openly admitted that:

“If you want to be decentralized, you really need to be decentralized, and that is going to then put you in a different category from the perspective of regulators because that’s just not something that we’ve dealt with before.”

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This is one of the most honest statements ever uttered in cryptocurrency. It is also highly insightful.

Pierce is openly admitting there is nothing the government can do against a decentralized organization. In other words, it is truly beyond their reach.

Hence, all the control that governments exert is instantly negated when an operation is truly decentralized.

This is why DAOs are going to be fatal.

No Taxation

Governments often have a varied relationship with major corporations. The reality is that these companies pay very little in taxes. Instead, they use their international status to maneuver things around so as to avoid having to pay. This is a great advantage when fending off competition. While smaller entities get hit by the taxman, these companies are free to operate without that burden. We see this with Amazon, Facebook, and Microsoft.

Decentralized Autonomous Organizations require no maneuvering. If they are out of the reach of entities such as the SEC, then the taxing authorities have no say either. This presents a major problem for governments since politicians are always on the hunt for more taxes. With them, enough is never enough.

If an organization is set up with no single point of failure, no mailing address or business head, what are they going to do? Also, if this is built upon a truly decentralized blockchain, there is no entity for target to get the DAO stopped. It simply keeps operating outside the reach of government.

Governments are designed to rule over the physical realm. If there is a physical headquarters, they can handle it. However, once something is virtual, especially distributed, they have no tools to deal with that.

This makes all rules they make obsolete, including tax laws.

Making The Virtual Domain Off-Limits

As we can see, anything that is going to have operations in the physical world will have government implications. There is no way to avoid that. Once we set foot into the realm of atoms, governments are there to take control.

However, DAOs are putting the virtual world out of their reach. The entire unfolding of the Metaverse is going to be set up where they have little-to-no control.

For example, the US Government can go after Facebook. It has a physical presence along with a corporate head. The Congress can call Zuckerberg into their hearings because he can receive a subpoena. What are they going to do with something like Hive? Or MakerDAO?

The point is that these entities now operate outside their realm. We are going to see a new one forming called the SpkNetwork. That is being set up where nobody is in control. There is no majority stake which gives a single person or entity decision-making ability. We also see a lack of a foundation or other structure that provides a point of vulnerability.

What is going to be a challenge is for founders or organizers to give up control. The present mindset is to maximize individual return wherever possible. This can be profitable but, as we see, also can be a point of failure.

With all the regulation, scrutiny, and intent for governments to put their hands all over what is taking place, people are going to start to shift their mindset. That type of control is an area of weakness.

Decentralized Autonomous Organizations (DAOs) present the opportunity to flip the situation completely on its head. Governments are the epitome of centralization and this can be countered by distributed networks.

The sooner the industry truly embraces this, which is from where it started, the better off it will be.

DAOs are going to really drive governments nuts. They will be commonplace within a couple years and then we will see how government overreach is negated.


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I think they are first going to drive the Financial Instutions crazy.

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Once this starts unfolding, we may finally see the governments forced to do away with the current tax system. That in and of itself would be a massive victory for the people. The only way they'll be able to generate revenue is through a consumption tax. Physical goods could still be taxed so the people actually buying things would pay the taxes rather than the people being taxed on earnings.

Obviously there will have to be some serious thinking put into how it all could, should, and would work but...payroll taxes, property taxes, and sales taxes would have to be the bulk of things so they'd have no choice but to hit the people who actually should be taxed, rather than building loophole after loophole for the politically connected to slip through.

The world is changing. The cat is out of the bag and there's no going back. Fortunately we have a sharp, level-headed leader right now who has done exactly zero for the country in his 50 years in politics.

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Technology is the great disruptor. People do not seem to realize that it rarely affects one thing. For example, the automobile not only affected the buggy whip makers but also those who sold oats.

Cryptocurrency, in all its forms, is evolving into something that is going to really take out many governments. Extend this idea to the Metaverse and you see how it can really put an end to the governance system we have now.

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Bang, I did it again... I just rehived your post!
Week 71 of my contest just started...you can now check the winners of the previous week!
!BEER
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Decentralization and Blockchain is the future! Its been fun watching Bitcoin prove itself over the years, further decentralized stuffs like these are sure to do well and take over too as time goes by; more fun to watch✌️

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**Bitcoin ** was the model and all else is going to have to take it from there. The idea is to focus upon decentralization with every aspect we can.

The more that is decentralized, the less they can touch.

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The other day, Nig govt suspended some Fintech apps for close to 6 months or over for not complying with regulatory bodies by freezing their operational accounts in the bank, the same regulatory bodies that granted them the authorization to operate in the first place. If the fintech apps were built on decentralized spaces, I wonder whose account the government will freeze. I know for a fact that with time the move over to decentralized solutions will be fully embraced and the govt won’t be able to stop it. Anyone that thinks the govt works in favor of the general people is totally delusional

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If the apps were centralized they still would be vulnerable. The key is not to have the power in the application as much as the system. On Hive, all front end reads the same data. Hence, the system is really at that level. When we see the SpkNetwork, that is being designed so it is not going to be centralized in any manner. Hence, there is no way to go after anything on the network if the video storage, as an example, is decentralized.

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This is going to be so exciting to watch. Once an idea reaches 20% to 30% of a population then it spreads like wildfire. Things are moving very quickly. Gen Z is looking for solutions to their problems. It's only a matter of time before the problems and solutions meet, and then that's going to be really exciting to experience.

I see bankers sent out a warning that in five years the dollar will be replaced with crypto currency.

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I see bankers sent out a warning that in five years the dollar will be replaced with crypto currency.

That wont likely happen either. The USD is well protected as compared to other fiat currencies. It is going to take longer than 5 years for all the infrastructure to be build out for crypto and other assorted financial services.

We will also likely see some type of UBI which helps to keep the government relevant as the need for them declines.

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I feel UBI coming soon, too. The Covid unemployment payments are the segue into that.

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Perhaps the biggest challenge is similar to what Hive DAO is experiencing. Without some government recognition, the exchanges are reluctant to list Hive. Thus far, in Texas, I only know of Blocktrades and Hive Engine as on and off-ramps available to me without having to get creative. Similarly, governments can have exchanges not list your coin. That doesn't kill it. But, it hampers growth.

I wish there were some DeFi option that pairs up Hive or HBD like HE does.

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It will come in time.

SpkNetwork is going to provide options to that once it is fully built out. It will be a wider ranging H-E.

For now we are limited but that is the nature of the beast. A lot of infrastructure still required.

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It would be fun seeing gov stoping things that have no physical form

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Fun to watch them try. I dont think they really have much chance of being successful.

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That's what is going to be fun seeing them fail

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Nobody is going to say we will tax or regulate cryptocurrencies all at once
But everything will come gradually by making concessions little by little
So I hope that we stick to decentralization in all its concepts


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The EU came out and said they were banning anonymous Bitcoin wallets.

So I would disagree, they are saying we are going to regulate cryptocurrencies and make sure all regulations are adhered to.

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DAOs come with transparency. The government seems to hide everything all the time. Especially the financials, where the lies lie. With DAOs, the community will have true ownership.

I agree that DAOs can kill the need of governments and also the banks. These institutions are fully corrupt and we need an alternative system.

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Over here the taxman has already issued instructions to all of the crypto exchanges in the country, to send them complete lists of all crypto transactions.

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@taskmaster4450 Sr. Its my request to you please right a article about
How a new inexperienced cryptocurrency investor or user can differentiate between a pump and dump coin or token and truly useful coin and token

Because mostly people follow the posts and news on social media and make there investments decisions influenced by top social media influencers

I wish you right a post about this how someone can able to do there own research about any new and old cryptocurrency and blockchain projects

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The future in which blockchain is a catalYser of is really exciting. I never would've thought things are going down the decentralized road so quickly! Here's to hope that we indeed see some good changes for mankind as a whole with what is yet to come.

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nailed it! :) really feels like we are regaining some of the freedoms we lost through decades of centralization

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We need more decentralization. They can't take down something where another one can be spun up without much effort. At most they can only target a few providers.

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(Edited)

DAO makes government DOA (dead on arrival)....and they are really late

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I don't even think governments even understand the impact of DAO yet. I have seen some transcripts where judges have proven to be completely clueless and even confused regarding even the absolute basics of blockchain. I doubt they will be ready to contain the spread of DAO. What we really need to focus on is decentralized infrastructure.

https://substratum.net is a great pick that is much better than VPN or Tor.

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Very exciting to see governments admit that decentralized organizations are beyond their reach. This is what is called Unstoppable Code

Code does have a bank account to freeze, nor a house to seize. You can’t put code in jail or put a noose around its neck and strangle it. It’s power lies in its anonymity and lack of a brick and mortar office. Decentralized Autonomous Organizations have multiple super powers. They are the new superheroes.

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there is nothing the government can do against a decentralized organization.

One of reasons why I’m bullish on Hive

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One day, youtube and tiktok will become "old fashion" thing😲

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