A Crypto Divorce Story: BanklessHQ and BanklessDAO Hash It Out

Untangling the Uproar Against Banklessness

Bankless Backlash Breaking it Down

Once upon a time, in the world of cryptocurrencies, a juicy drama unfolded between Bankless HQ, a popular media brand, and BanklessDAO, its semi-related counterpart. And guess who’s caught in the middle? The innocent children – our lovely digital assets! But fear not, dear readers, for this tale may just have a happy ending.

The co-creators of the influential Bankless brand, David Hoffman and Adam Sean Adams, are spearheading this crypto divorce story. They’ve submitted a proposal to the decentralized autonomous organization (DAO) that shares their brand’s name, but for now, they just want to sit down and talk. It’s like a virtual therapy session for blockchain enthusiasts!

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In a crystal-clear livestream video call, Hoffman, the professional podcaster, reveals that they are currently in the “parameterizing phase.” Ah, such fancy terminology! It sounds like they’re setting the scene for an epic battle between the forces of good and evil in the crypto space.

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But what’s causing this rift, you ask? Well, it all boils down to a proposed fundraising and education initiative by BanklessDAO. Apparently, it caught Hoffman and Adams off guard, and the whole debacle blew up the entire brand like a firework on a holiday weekend. Talk about a crypto explosion!

Now, here comes the plot twist. A large section of “Crypto Twitter” and “Bitcoin Twitter” took serious offense when BanklessDAO requested a whopping 1,818,630 ARB (worth around $1.8 million) to fund a year-long education initiative. It’s like the crypto world’s version of a treasury raid! Imagine raiding a hidden treasure chest filled with sparkling Bitcoins!

According to Hoffman, this triggered a reflex amongst the crypto community. They thought Bankless was up to no good, like a mischievous crypto bandit. But hey, this is not the first time it’s happened. In the past two years alone, there have been five pile-on events where people were mad at Bankless for something or the other. It’s like a never-ending game of Crypto Whack-a-Mole!

The proposal, if passed by Arbitrum’s affiliated DAO, would finance a “multilingual marketing campaign,” content writing, podcasts, events, and training sessions. All of this is meant to introduce the core technology and tools built on top of the Ethereum scaling layer to a new audience. It’s like an epic quest to spread the crypto gospel!

But is this really a “treasury raid” or just a case of misunderstanding? This is where reasonable minds can disagree, and the Arbitrum DAO will have the final say. After all, BanklessDAO has undertaken similar initiatives in the past, with one notable example being for Ethereum’s rival, L2 Optimism. It seems like the crypto community has a knack for blowing things out of proportion!

To add fuel to the fire, Arbitrum paid a hefty sum of half a million dollars to advertise on Bankless’ media products. So, naturally, the optics of BanklessDAO’s separate funding request seemed like a cash grab. It’s like a never-ending saga of twists and turns in the crypto realm!

But here’s the biggest issue at hand: the failure to delineate between the different organizations that share a name and founders. BanklessHQ is the established media brand covering the niche DeFi sector with around 20 employees, while BanklessDAO is a newer entity with flat organizational structures and sub-DAOs. It’s like having two houses in the same neighborhood but not knowing who lives where!

And here’s where it gets juicy! Bankless, the media brand, is the brainchild of Hoffman and Adams, who also manage a separate VC entity that raised a whopping $35 million. Yes, you heard that right – $35 million! However, BanklessDAO is legally nonexistent, having been founded during the Bitcoin bull run when everything seemed like a wild rollercoaster ride.

To Hoffman, this recent backlash is the consequence of a few moving parts. First, the chaotic mess that is Twitter, where conversations can quickly devolve into a circus act. Second, the perception of BanklessDAO’s funding request as a cash grab due to the sizable advertising payment by Arbitrum. And third, the ever-persistent issue of differentiating between distinct organizations within the crypto space. It’s like a circus filled with clowns, acrobats, and tightrope walkers!

But let’s not forget the human element in all of this. The Bankless founders initially got defensive and tried to deflect responsibility for the DAO’s actions. However, they are now on Twitter and the Bankless Discord, attempting to do some much-needed damage control. They’re even planning an actual face-to-face meeting to sort things out. It’s like a high-stakes negotiation between rival kingdoms!

The primary complaint from BanklessDAO revolves around Hoffman and Adams being too “hands off.” You know, like indifferent parents who leave their kids to fend for themselves. Talk about negligent crypto parenting! They started the DAO, promoted it tirelessly, and held a significant number of BANK tokens used for governance decisions. Yet, they remained distant from the day-to-day operations. It’s like watching irresponsible parents arguing over their neglectful parenting styles!

While there’s a case to be made about their lack of involvement, it’s crucial to understand the dynamic between Bankless HQ and BanklessDAO. They had a symbiotic relationship, with Bankless handing off a profitable investing protocol and a blockchain-related apparel unit to the DAO. But they never provided voting rights over all of Bankless to the DAO members. It’s like parents passing on their family heirlooms but keeping the keys to the vault.

But fear not, dear readers, for there might yet be a silver lining in this crypto storm! Bankless HQ and BanklessDAO are planning to submit a governance proposal to clarify the branding separation between the entities. They will also burn their bank of BANK tokens like a phoenix rising from the ashes. Will this be the resolution they’re seeking? Only time will tell!

This crypto divorce teaches us valuable lessons about the dangers of ceding control to outside organizations and the importance of strong leadership within DAOs. It’s a wild world out there, my fellow crypto enthusiasts, and we must navigate it with caution and wit!

Now, as we wrap up this rollercoaster of a story, let’s remember the essence of Bankless. It’s not just a mere media brand; it’s an idea, a movement, a mission. It’s about being bankless in a world where banks reign supreme. And even with all the drama and chaos, Bankless and BanklessDAO stand tall as beacons of hope in the vast ocean of cryptocurrencies.

So, my dear readers, be inspired by the never-ending saga of Bankless and the complexities of the crypto realm. Keep exploring, keep learning, and stay bankless. And remember, in this wild world of cryptos, the way you communicate and choose sides is still within your control. As they say, “HODL on, my friends!”

Original content from CoinDesk

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