DEFI

Bankless DAO's $2 million funding application sparks controversy, Bankless founder faces backlash.

share
Bankless DAO

Bankless DAO sparked controversy by proposing to allocate 1.82 million ARB tokens to fund its operations for the next year on Arbitrum. Bankless is a for-profit entity and holds 25% of the tokens in Bankless DAO. Despite the incident, it has continuously emphasized that Bankless DAO is not affiliated with it, leading to further criticism.

Controversy Surrounds Bankless DAO Proposal: Seeks $2 Million from Arbitrum

Well-versed in airdrops and governance information, the crypto community member olimpio summarized the controversy surrounding Bankless, which began with Bankless DAO initiating a governance proposal to request 1.82 million ARB tokens from Arbitrum for activities over the next 12 months.

At the time of writing, the price of ARB was $1.07.

Do Bankless Founders Have Financial Interests?

Bankless co-founders Ryan Sean Adams and David Hoffman both hold BANK governance tokens in Bankless DAO.

The former tweeted emphasizing that neither of them benefits through the DAO:

  • No financial gain from Bankless DAO.

  • Never sold BANK tokens and do not intend to.

  • Will not interfere or vote through BANK tokens.

Bankless DAO Entities Worldwide Apply for Grants from Gitcoin

olimpio pointed out that in Gitcoin's 19th round of grant applications, 10 Bankless DAO entities requested grants.

He believes this is Bankless opening its brand for use by various communities, resulting in unfortunate outcomes.

Gitcoin grant applications

Bankless DAO Also Seeks Funding for Podcasts

Ryan Sean Adams clarified that this is separate from the official Bankless Podcast.

Is Bankless Deserving of Criticism?

olimpio commented on the incident:

The real issue lies in poor control over the Bankless brand. The introduction of Bankless DAO could have been foreseen to bring about complex repercussions, and criticism from the crypto community is justified.

He also pointed out issues with Gitcoin, suggesting a deeper understanding of who the ultimate beneficiaries of these DAOs would be if not for technical projects among all grant applications.

Bankless: Attacked with Misinformation

Ryan Sean Adams clarified in response to the backlash following the governance proposal at Bankless DAO:

  1. Bankless and Bankless DAO are separate entities.

  2. Bankless founders have not received financial benefits from Bankless DAO.

  3. Bankless was unaware of the proposal until today and was not involved.

  4. Bankless DAO has excelled in both products and services in the past, and they believe they will address concerns raised by the proposal.

  5. We view Bankless as a headless brand that does not rely on specific individuals, allowing all like-minded communities to use it.

  6. The above 5 points are well-known, yet some maliciously attack Bankless with false information.

Cobie's Comments

Renowned crypto KOL Cobie also expressed negative views on the incident, raising several questions about Bankless.

It's Normal for Bankless to be Criticized, They Shouldn't Lash Out at Critics

Under Ryan Sean Adams' tweet, Cobie commented:

Bankless DAO using your brand, name to request $2 million, and you're angry at the community's confusion. You are the largest holders of BANK tokens, so of course, people are puzzled. This is just stupid.

Bankless Holds 25% of BANK Tokens, Yet Distances Itself from Trouble?

Cobie stated:

Bankless initially received 25% of the total supply of BANK tokens for "ongoing participation" in Bankless DAO affairs, and now you are "not involved" in this. I'm pretty sure you've had a change of heart. I think you were happy to see DAOs develop under your umbrella and wanted to participate, but later decided to keep a distance. If you're not managing, there's no reason to hold 25% of BANK tokens.

Ryan Sean Adams emphasized consideration of token burn, which may be implemented in the future, but the current focus is on addressing brand confusion issues.