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If EOS is a DAO, why do we need our

own blockchain and pay dozens of BP's to dump on us? Can get the service much cheaper with better security elsewhere. And gain all the UI and composability features that other chains get.

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Yes, but how would those individual chains interact without trusting either network? Most probably would hold a type of bond of the other chain, or a pool of holdings owned by the other chain which can be utilized in making offchain transactions between themselves, but not all, and not necessarily always enough to cover large transactions.

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