I took a look at their whitepaper and it says that they’re not using blockchain at all

If community owners want to set a blockchain name like hello.eth or hello.sns it’s possible, but it’s optional.

It’s some sort of proprietary peer to peer algorithm. Is this something that changed in implementation?

Not true, it’s free software released under GPL V2, check out plebbit-js

but it’s run by a DAO that operates using a governance token, which is not exactly great.

What is the problem with DAOs? I think they’re a great way of facilitating coordination between anons on the internet