Parity is looking to transition control of its Ethereum client to a new DAO, OpenEthereum

Parity Technologies is looking to step back as the primary developer of its Ethereum client and turn ownership of the codebase over to a new DAO. The long-time Ethereum contributor cited a shift in priorities, meaning an increased focus on Substrate and Ethereum-competitor Polkadot, as to why it no longer wishes to dedicate resources to its Parity client. The company does plan to participate in the new DAO, which its calls OpenEthereum, though more in a mentorship-type role. Remaining DAO members would consist of the developers and organizations that currently rely on the Parity client, with membership in and control over the project determined by a “stake-weighted token system.”

Why it matters:

• A lot to unpack here. First, the move makes sense. Polkadot is a clear competitor, and perhaps one of the most formidable, to Ethereum, and with the new network closing in on a mainnet launch, there’s no logic in Parity throwing punches at itself. Second, Parity received one of the largest Ethereum Foundation (EF) grants ($5 million to be exact) to continue maintaining its Ethereum client and to develop new software for ETH 2.0. By abandoning its post, Parity forfeits any rewards for milestones left unmet. But that didn’t stop Parity from announcing it claimed most of its EF grant money ($3.7 million) just five days ago.
• So why a DAO? Viktor Bunin had the best take on it so far: “Transitioning to a DAO sounds like telling your kid the family dog went to live on the farm.” The message behind everything is clear: Parity has officially moved on from Ethereum. Long live the protocol wars.