The economic crisis in the Asian country Sri Lanka is capturing the eyes of the entire world and the community of the blockchain ecosystem is proposing some solutions for a country in which violence and political chaos have been unleashed.
Given this, Justin Sun, founder and CEO of the Tron network said he had some ideas to get the island nation out of bankruptcy and mentioned a Decentralized Autonomous Organization (DAO) as part of it.
Since many people are wondering what to do in a country adrift, Sun wrote on Twitter: “Sri Lanka is officially in DAO mode”, referring to what happens in the voting of this type of organization.
Hundreds of micromessage network users have responded to the developer. Some disapprove of his idea, while others applaud it. who approve they believe it is possible for a decentralized organization to replace a country’s government and its central bank.
In itself, the proposal arises because after declaring the nation bankrupt, President Gotabaya Rajapaksa and the Prime Minister of Sri Lanka agreed to resign yesterday after the country’s most chaotic day in months of political turmoil.
Protesters angry at the power outages, the shortage of basic goods and the increase in prices broke into the houses of both officials and set one of them on fire in a fit of anger at the severe economic crisis in the country, as reported by CriptoNoticias. previously.
Sri Lanka’s constitution dictates that if a president resigns, the country’s prime minister will take over the role, but now that incumbent Ranil Wickremesinghe has said he too will step down, it could be the speaker of parliament who takes over. However, the transition of power may not calm the spirits of thousands of protesters exhausted by bad political decisions.
Can a DAO take over the governance of Sri Lanka?
A DAO assuming governance of a nation that has declared bankruptcy is unlikely, though not impossible. If it happened, it would be a unique case in the world, but the proposal was only made in a tweet isolated from the events.
However, to know if a DAO could assume the governance of a country, we must first know what its meaning is. According to the CriptoNoticias glossary of terms, it is about a digital company that works based on a system of rules previously codified through smart contractsor also from a blockchain.
We can then understand DAOs as a new type of organizational structure based on blockchain technology and that works as a cooperative that operates with cryptocurrencies.
In their most basic form, DAOs are groups that come together for a common purpose, like investing in startups or managing a project.
There has not been the first to administer an entire country, but many on twitter believe that one of these organizations would be ideal to govern Sri Lanka and that bitcoin would be another step to give to solve the economic and governance problems that exist in the country.
To achieve this, a constitutional reform and a rethinking of numerous laws that are in force in Sri Lanka would be necessary. He wants to say that under current conditions it is not possible for a DAO to take over the governance of the country.
“What is happening in Sri Lanka will happen all over the world. A new currency will emerge as a safe haven out of the failing hands of governments and that stream is bitcoin.” points out a Twitter user.
Also there is someone who compares what is happening in Sri Lanka with the economic situations in Venezuela, Argentina and other countries where there is already a high adoption of bitcoin by the population.