Bankless controversy forces founders to burn tokens and separate from the DAO.

Amid the ongoing controversy surrounding cryptocurrency media Bankless and its related decentralized autonomous organization (DAO), BanklessDAO, the founders of Bankless have proposed to separate the brand from The DAO.

Bankless co-founders David Hoffman and Ryan Sean Adams plan to submit a management proposal for BanklessDAO to separate the two entities. The co-founders took to X (formerly Twitter) on November 26th and announced that they plan to burn all of their BanklessDAO (bank) tokens on the back of this idea.

Hello City

To steer clear, @BanklessHQ we're better off accepting criticism.

I really like unbanked, and when I see it unfairly attacked I have an instinctive reaction to defend it.

This clouded my hearing of what CT was trying to tell me,… pic.twitter.com/7L5ufQ1bAu

— David Hoffman.eth (@TrustlessState) November 26, 2023

Hoffman and Adams' decision to separate Bankless from BanklessDAO was in response to community criticism of BanklessDAO's request for relief from arbitration. In the year The application, which was registered on November 20, asked for 1.82 million Arbitrum (ARB) tokens from Arbitrum, a layer 2 scaling project for the Ethereum blockchain. The currency is worth around $1.8 million at the time of writing, according to data from CoinGecko.

“The concern is that BanklessDAO can't deliver on such great ideas without leveraging the weight of the Bankless brand, which they didn't create, don't own, and shouldn't benefit from,” Hoffman wrote.

The BanklessDAO community was quick to criticize the initiative, with many DAO members pointing out that the proposal called for nearly two million ARBs to be written without detailing how the funds would be used. In response, BanklessDAO has committed to improve the proposal to cut its one-year grant to three months and provide clear KPIs and milestones.

The debate between supporters and opponents of the proposal quickly escalated on social media. Some analysts, such as the CEO of the anonymous proxy fund Fubar Bankless, have accused the BanklessDAO founders of “illegitimacy” by pretending to be completely unrelated to Bankless.

Some Bitcoin (BTC) enthusiasts like Pleader have also criticized the bankless founders as “un-Graffman,” referring to Hoffman and Adams, who promote projects like Nexo. “They later explained that they were paid 31k to the embryo Nexo, not 250k,” the pleader wrote.

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Adams, co-founder of Bankless, echoed the criticism, stressing that calling creators ad entrepreneurs is essentially trying to make products available for free. He also revealed that paying subscribers have been funding the unbanked mission.

Please understand – when you call creators to run ads – but they refuse to pay for the product you're asking them to do for free.

Is it fair?

How we do it: If you don't like ads, you can pay $15 a month for no ads.

If you like crypto media, support it.

— RYAN SΞAN ADAMS — rsa.eth (@RyanSAdams) November 26, 2023

In the year Founded in 2019, Bankless is a crypto media company promoting the adoption and awareness of bankless financial systems. In May 2021, Bankless launched the Bankless DAO, a decentralized community to coordinate and promote Bankless media, and launched the BANK token.

In April 2023, Bankless Founders announced it was raising a $35 million venture capital fund to invest in seed-stage Web3 companies.

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