On December 29th, Beijing time, a project called “Gas DAO” once again attracted the attention of the crypto community.
Gas DAO is a decentralized autonomous organization that declares its vision to be the representative of the most active Web3 users on the Ethereum network, connecting the world of DeFi, NFT and Dapp. GAS is the ERC-20 governance token of Gas DAO. In the future, users with 1 billion tokens can initiate proposals; the total circulation is 1 trillion, of which 55% will be airdropped to 634,429 eligible wallet addresses (on-chain activities) Gas consumption is greater than US$1559). Regarding the specific future development plan of the project, the official website did not introduce it in detail.
With the opening of airdrop applications today, the Ethereum network began to be congested, and Gas fees soared, reaching close to 200 Gwei at one time. According to data from ultrasound.money, 407 ETH has been burned in this airdrop collection activity. Currently, GAS is quoted at US$0.00049 and the circulating market value is close to 100 million US dollars. In addition, some users responded that the slippage of selling the token on Uniswap exceeded 10%.
“Gas DAO” is just a microcosm of the recent DAO movement.
With the new wave of “DAO” revolution initiated by OpenDAO (SOS) on Christmas Eve, more and more projects have joined the movement, transferring the power of issuing tokens from the project side to the community in an attempt to realize value shared. On December 28th, a project called “MaskDAO” began to airdrop the token MASK to MetaMask users. However, the project was not officially authorized by MetaMask, and then Metamask issued a “phishing site” warning to remind users and restrict access to the site.
At the same time, the legitimacy of the DAO project has been questioned. Beanie, the founder of PUNKS Comic, said that people’s pursuit of SOS is unreasonable; Canary Collection co-founder osf said on Twitter: “Is SOS legal? I am highly skeptical of claiming random airdrop tokens. It should be so. I hope that no one will participate in the airdrop without a background check).”
In our opinion, this type of DAO project is essentially a MeMe currency, and most of them use short-term community hype, marketing, and pull offers to gain people’s attention. Users participating in such projects need to pay attention to the following risks:
One is the concentration of project chips, which may lead to liquidity risks. Whether it is OpenDAO, MaskDAO, Gas DAO, the project itself holds more than 50% of the total tokens, generally held in the name of DAO governance, liquidity incentives, etc. For example, Gas DAO reserves 30% of the tokens for the DAO treasury, and 15% of the tokens for 25 core contributors. With the short-term price increase, the risk of arbitrage hitting the market is greater. Users need to pay attention to the risk of price fluctuations.
The second is the risk of leakage of the wallet’s private key. Most of the various DAO projects that have recently emerged have not been audited by professional auditing institutions. Users need to authorize smart contracts when applying for tokens, which leads to the leakage of wallet private keys and may lead to the theft of assets.
The third is to beware of the brave plate. Some DAO projects may deliberately transfer coins to the encrypted KOL’s contract address, forging the illusion of a big buy, to trick ordinary users into buying, but when the user buys, they find that they can’t sell at all, and eventually lose money.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/the-gifts-given-by-the-local-dog-daos-have-already-secretly-marked-the-price/
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