$222 million. That's a lot of money. Dao5 just raised it, and they’re focusing it at blockchain projects until they are ready for institutional and governmental adoption. On the surface, it sounds promising: real-world integration, a maturing crypto landscape. Let's be real, folks. Are we paving the way for a decentralized future that we want to live in? Or are we just rebranding the existing power structures with a new blockchain facade?

Real Adoption or Centralized Control?

Tekin Salimi, Dao5’s founder, on the crypto industry maturing. He's right, in a way. Maturity doesn't automatically equal progress. It could just mean consolidation. Their areas of investment are on-chain public infrastructure, stablecoins, and “state-sovereign AI.” These tools almost appear as if they were created by the state to retake control from individuals, not empower them.

Think about it. On-chain public infrastructure. Is the latter really what we want, about building open, permissionless systems or allowing governments to surveil every transaction, every interaction? Stablecoins. Or will they deliver a bare bones, not really decentralized option that maintains current fiat control? Or will they become regulated and co-opted, serving to entrench the current financial power structures? And "state-sovereign AI"? That sure looks like the early outlines of a sci-fi dystopia to come.

We've seen this movie before. Remember the early days of the internet? After all, it was supposed to be a democratizing force, linking everyone together, amplifying their voices, empowering the voiceless. Instead, control went to a few large technology companies. They bend international communications policy to their will and squeeze value from everything we do. Are we fated to go down that same road with blockchain?

Community First, Not Institutions First

Miguel recently asking if I was claiming Dao5 was evil, or that institutional adoption was evil in itself. I’m not saying don’t do it, but what I am saying is we need to be damn careful about where we place our priorities. Instead, we must advocate for projects, regardless of mode or technology, that put empowering communities first no matter what. So often, it’s the other kind of project—the kind built from the ground up, by and for the people.

There’s no arguing that blockchain technology has the potential to disrupt everything from our voting systems to how we manage our supply chains. It can provide power and agency to the most marginal communities. Second, it opens up access to financial services for the unbanked. Third, it produces completely new types of democratic governance. That potential will all be wasted if we allow institutions to control the engagement on their terms.

What if that $222 million was used to fund DeFi platforms that are truly inclusive, offering microloans and investment opportunities to individuals who are typically excluded from traditional financial systems? Or to build out community-controlled infrastructure, such as decentralized energy grids or alternative, resilient communication networks? Or to fund truly transformational, blockchain-powered social impact enterprises that solve urgent global problems, such as climate change or poverty?

These are just the type of the projects that get me excited. These are the types of projects that are the key to making the world truly a better place. This is the disruptive potential of blockchain.

DAO Conversion: A Real Shift, or a Rebrand?

Dao5 intends to transition into a DAO sometime later this year. That's interesting. Let's not get carried away. A DAO is just a structure. At the end of the day, it’s the people and the purpose behind it that really counts.

Will this DAO actually be decentralized, with real community participation and clear decision-making processes? Will it merely be another round of “decentralization theater?” Only a small circle of connected elite would truly hold all the influence, while only feigning allegiance to democratic values.

I'm cautiously optimistic. I truly hope that Dao5’s intentions are pure, and they too are sincerely interested in creating a more just and equitable future. I hope it leads them to investing in what yields the greatest return—not just for their bottom line, but for people and communities across the globe.

I'm a realist. And, as we all know, power corrupts. Institutions often put their own institutional interests above the interests of the common good.

So, let’s hope very careful attention on Dao5. Let's hold them accountable. Let's demand transparency and community involvement. And let’s not forget that this $222 million shouldn’t just benefit institutions, it needs to empower communities.

The future of blockchain depends on it. Our future depends on it.