The Crypto community picks Ethereum blockchain for DAOs due to its mature ecosystem. Is it really the only option we have to operate Decentralized Autonomous Organizations?
According to DAO tracker DeepDAO CEO Eyal Eithcowich, Ethereum is the only blockchain with a mature ecosystem in terms of tools for starting and managing all facets of DAOs. For Eyal, Ethereum is “the chain where the DAO movement started.”
Ethereum, primarily, operated for decentralized apps, but its universal features have given more options to form DAOs compared to other chains. The reason is simple: a mature ecosystem.
There might be other chains like Solana and Cardano with a good ecosystem, nevertheless, they don’t meet the same criteria as Ethereum’s, marking its dominance in the market.
Currently, Ethereum holds 4,200 DAOs and protocols in its chain, while Solana has only 140 and Cardano has 10 DAOs in their ecosystem. This shows the huge competition gap between the chains.
Although there are shortcomings when it comes to Ethereum, for example, the high fee, many DAOs still choose Ethereum for its practicality and more tool options that other chains might not offer. Solana offers less gas fee, but the ecosystem is nowhere near Ethereum’s quality.
Saro McKenna picks EOSIO as a better option for forming DAOs. The ecosystem might not be up-to-notch; however, the no gas fee facility is much more affordable for DAOs.
For her, the EOSIO codebase is extremely powerful as it allows dynamic collection election mechanisms and layered multisig permissions essential for the functioning of DAOs.
Despite the EOS’s powerful mechanism, crypto analysts believe it is still not enough to satisfy DAOs’ conditions. People chose to not build DAOs with EOS due to various shortcomings.
Koinos Andrew Levine, CEO of a blockchain consulting firm, says,
“The EOS database is built on something called ‘memory-mapped files,’ another vestige of the Steem design, an important consequence of which is that it is designed to use the most expensive form of storage possible: random-access memory.”
Furthermore, EOS blockchain charges an account creation fee if not the gas fee.
While many complain about Ethereum’s high gas price, the fee lessened since last August; the Ethereum users experienced lower rates for gas fees in March.
For the crypto community, Ethereum’s ecosystem is more risk-free and easier to navigate, which is why it is the best option in the market.
According to Eyal Eithcowich, this mindset might change as other chains grow in popularity in the upcoming years.