The crypto community and industry have chosen Ethereum as the chain of choice for most blockchain-based decentralized applications, but other chains may be better suited to handle the workload for decentralized autonomous organizations (DAOs).
Technical advantages and cheaper transactions have yet to become a major pull factor of Ethereum Virtual Machine (EVM) chains. EVM compatibility allows a network to use the security features of Ethereum.
Ethereum (ETH) and its compatible chains have a clear advantage in the number of DAOs compared to each other. They host more than 4,200 DAOs and protocols required by administrative participants according to data from the blockchain voting platform Snapshot.
Similarly, the Solana (SOL) ecosystem has only 140, Cardano has 10 DAOs according to ecosystem tracker Cardano Cube, and Polkadot (DOT) Substrate says it has only eight. This is not to diminish the fact that among the top 10 DAOs by the number of decisions made in the past seven days, DAO tracker DeepDAO shows that three are based on Solana.
Ethereum’s leg above the rest may be for simple but practical reasons, according to DAO tracker DeepDAO CEO Eyal Eithcowich in email responses to Cointelegraph. He attributes the dominance of Ethereum to the fact that it is “the chain where the DAO movement began.”
“More importantly, (Ethereum’s) the most mature ecosystem in terms of tools for launching and managing all facets of DAOs, mostly financially, but not exclusively. This may change as other chains grow in popularity.”
On the other hand, he pointed to high gas charges as a shortage of Ethereum. He added that Solana allows DAOs to make fast and cheap transactions, “But again, the supporting features and tools in the ecosystem are less robust.”
In addition, Solana has become vulnerable to rare network outages.
The co-founder of the nonfungible token (NFT) game on EOSIO-based WAX network Alien Worlds, Saro McKenna, told Cointelegraph last week that she believes EOSIO (EOS) is better at building DAOs.
In their view, Ethereum is too expensive for voice purposes and was designed to be a “general-purpose blockchain” to handle a number of different tasks. This contrasts with EOSIO, which McKenna said “was built in part for the purpose of DAOs.”
“The EOSIO codebase is extremely powerful, enabling layered multisig permissions and dynamic collection selection mechanisms that are critical for DAOs to function properly.”
Gas charges have long been a problem for Ethereum users, but in March, charges were at their lowest levels since last August.
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However, CEO of blockchain consulting firm Koinos, Andrew Levine, had pointed criticism at EOSIO which could explain why it falls short of Ethereum’s adoption rate. In February, he wrote that although EOS transactions are virtually free of charge, there is a fee for creating accounts. Furthermore, keeping coins in an account is quite complicated compared to Ethereum:
The EOS database is built on something called “memory-mapped files”, another remnant of the Steam design, a major consequence of which is that it is designed to use the most expensive form of storage possible: random access memory ( RAM) “