The first fully anonymous DAO has been created to 'defend freedom.'

On August 12, Amir Taaki, a renowned Bitcoin developer, announced the launch of the first fully anonymous on-chain Decentralized Autonomous Organization (DAO), aimed at "defending freedom." This innovative DAO is designed to be entirely invisible on the blockchain, concealing every aspect including its existence, treasury, transactions, membership, token ownership, proposals, and voting mechanisms.

Taaki's groundbreaking approach ensures that all DAO activities remain hidden. For instance, smart contracts can still interact with the DAO, such as transferring funds from the treasury, but the transactions themselves do not reveal any details about the treasury or the involved parties. Receivers of these payments remain anonymous, maintaining complete privacy.

In an interview with Cointelegraph back in 2014, Taaki voiced his concerns about the internet and tech industry's reliance on surveillance and data collection. He argued that DAOs should embrace anonymity and subversiveness as a defense against oppressive regimes. According to Taaki, anonymous DAOs offer a way to establish free, uncensored, and sovereign online organizations.

Taaki is collaborating with DarkFi, a team dedicated to developing anonymous tools for online organizations, aiming to leverage the true potential of cryptocurrency. Nick Almond, CEO of Factory Labs and founder of Factory DAO, praised the new anonymous DAO on X, calling it “cypherpunk AF” and noting its potential to transform DAO game theory. He remarked, "It's primitive. A privacy building block. My mind is spinning at how this will transform DAO game theory."

DAO game theory aims to design systems where the rational actions of individuals lead to the best possible outcomes for the organization as a whole, while seeking to balance decentralization with efficient decision-making.

Despite the innovative nature of DAOs, their governance remains challenging. The absence of traditional hierarchies can lead to unclear leadership roles and responsibilities. Furthermore, unequal distribution of tokens can centralize control in the hands of a few major holders, undermining the principles of decentralization. This issue has been evident in recent governance problems faced by several DeFi protocols, including Uniswap and Compound Finance.