Parity Technologies, the parent company to Parity Ethereum, announced that they will no longer run the network but instead mandate a Decentralized Autonomous Organization (DAO). This ETH software client provider and the second largest Ethereum network operator noted that it will mainly focus on its own blockchain platform, ‘Polkadot’.
We are planning to move Parity Ethereum to a DAO ownership & maintainer model. #OpenEthereum will provide the basis for cross-org collaboration to ensure the codebase gets the attention it needs to realize its full potential. https://t.co/vtLeAFVWhf
— Parity Technologies (@ParityTech) December 16, 2019
Basically, the DAO dubbed ‘OpenEthereum’ will be tasked with maintenance and code development in Parity Ethereum. The firm is optimistic that the shift will enable its ETH based platform to get the attention it needs to attract a larger clientele. Speculations show that the DAO may be composed of stakeholders like Gnosis, POA network, ETC labs and the Ethereum foundation whom Parity is set to approach. It is also notable that Parity Ethereum is seeking to be part of the DAO as a silent member.
The OpenEthereum DAO is designed to leverage a ‘stake-weighted token system’ which will enable a transparent DAO ecosystem in the decision-making process. Parity will in turn focus resources to develop its blockchain network given the DAO will streamline its Ethereum software client maintenance;
“As we move to a multi-chain future based on technology that is far more modular, maintainable and interoperable, we find it increasingly difficult to explain to our stakeholders why it makes sense to dedicate our expertise to maintaining legacy technology.”
Parity added that it will also exit the Serenity development team despite a heavy funding from Ethereum Foundation and the excitement around ETH 2.0. This may not be a surprise to Ethereum and Parity followers given Gavin Wood’s experience in both companies as a founder.
The Polkadot blockchain innovator is seeking to create a platform that will facilitate digital ledger interoperability under Web3 foundations. Many crypto stakeholders have termed this organization an Ethereum competitor with some predicting that Polkadot will eventually move from the ETH blockchain completely.