The Rise and Fall of High APY Decentralized Autonomous Organizations in the Blockchain Ecosystem

Abstract

Abstract: The Blockchain ecosystem provides a space for developers and investors alike. Every few years we notice a certain type of project that catches the eyes of investors that disrupts the whole ecosystem, seeming to provide the most value/ returns in the eyes of the investors. Oftentimes, as history has proven these projects are nothing but a mirage formed by complex mechanisms that prove no utility/ work in a way that seems valuable at first but is an implementation of something very simple once understood. Decentralized Autonomous Organizations are a recent ecosphere of projects that took over the industry- built over possibly every layer 1 and layer 2 blockchain. This is a study on why the working of the DAOs was fundamentally flawed and the catalysts that caused projects on such a large scale to fail.