I’ve been diving into the world of DAOs lately, and one that caught my eye is PeopleDAO. It’s an interesting beast, born from the ashes of ConstitutionDAO, and it aims to incubate projects that focus on social good using blockchain technology. But like anything in this space, there are pros and cons. Let’s break it down.
The Good: Structure and Focus
First off, I have to give credit where it’s due. PeopleDAO operates as a metaDAO, which means it supports various subDAOs and initiatives under one umbrella. This structure allows for a diverse range of projects to flourish while still being aligned with a central mission. And what is that mission? To promote web3 and social good.
The $PEOPLE token is another interesting aspect. It’s used for governance within the DAO, allowing holders to vote on decisions affecting the community. The token has a capped supply, making it slightly deflationary over time if redeemed for ETH. This creates an incentive for people to hold onto their tokens rather than dump them immediately.
PeopleDAO has already incubated several subDAOs like PandaDAO and LanguageDAO, which further emphasizes its focus on advancing web3 technologies.
The Bad: Security Risks
However, not all is sunshine and rainbows in the world of PeopleDAO. In March 2023, the DAO faced a significant security breach when a social engineering hack led to the loss of 76.5 ETH (around $120K at the time). The hack exploited a Google Sheet that was mistakenly shared with edit access in a public Discord channel—yikes!
This incident serves as a cautionary tale about relying on centralized tools for crypto management. It underscores how vulnerable even well-intentioned organizations can be if they don’t have robust security practices in place.
Summary: A Cautious Endorsement
So where does that leave us? PeopleDAO is an intriguing case study in how DAOs can operate but also serves as a reminder of the risks involved in this nascent space.
On one hand, its structure and focus provide an excellent framework for promoting social good through blockchain technology. On the other hand, without proper precautions, even decentralized organizations can fall victim to hacks.
As I continue my journey through crypto land, I’ll keep an eye on PeopleDAO—and maybe even venture into some of its subDAOs if they seem secure enough!
