KuCoin Labs, the investment and research arm of cryptocurrency exchange KuCoin, has released its annual report. It is predicted that decentralized finance (DeFi) will continue to be a key trend in the crypto industry in 2022, and that governance will be implemented through decentralized autonomous organizations (DAOs).
As the DeFi ecosystem continues to be threatened by whales This has made the risk of financial loss in this sector more apparent. As a result, calls for decentralized financial controls have been raised. It comes into force in 2021 and the sector is starting to face law enforcement. in the past year
KuCoin Labs has speculated that the industry may turn to DAO instead to mitigate regulatory risks: “If DeFi aims to mitigate regulatory risks, The DeFi governance model will gradually become DAO.”
A DAO that always puts the interests of the community first is “true decentralized governance.” This is why the exchange speculates that the industry will see a shift in mechanism-coordinated DeFi governance. different
KuCoin Labs also suggested that the basic operating principles of DAO are reasonable enough to serve as the basis for creating legal entities, although the industry may not see DAO expansion in the coming years. But the report states that refining their mechanisms could also set the stage for adoption by companies and organizations.
Previously, the Marshall Islands recently recognized DAOs as legal entities, meaning they can be registered and operated legally within the country’s jurisdiction. which overall This represents proof that DAO governance structures are becoming more prevalent in the blockchain world.
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