Syndicate stated that the platform has created 10% of all decentralized autonomous organizations (DAO) in existence in less than 3 weeks of operation.
A13Z and Coinbase Ventures have invested in Syndicate. The news was announced in a tweet on February 15th.
Will Papper, co-founder of Syndicate, told Cointelegraph that the project has built 450 DAOs, which is little more than 10% of the “best estimates” of 4227 DAOs in existence, according to DeepDAO’s metrics and data cited in Forbes. DeepDAO is an analysis tool that tracks decentralized projects.
The increasing penetration of new organizations at Syndicate shows that the DAO structure has grown in popularity since its initial introduction to the crypto mainstream only a few years ago. BitDAO and Uniswap are now the two most popular DAOs. Uniswap DAO was established in 2020, followed by BitDAO in 2021. They currently control a total of $4.4 billion in treasury funds.
The proclaimed purpose of Syndicate is to democratize investing by allowing organizations to build decentralized investment structures. It automates the procedure on-chain, letting anybody start-up an investing DAO in under a minute for the cost of gas. DAOs may also integrate compliance tooling to assist maintain things in line with rules.
Papper believes that DAOs are “one of the most powerful structures for coordination that we’ve seen,” and that their use in controlling companies and groups will become more popular in the future.
Co-founder of Syndicate, on the other hand, stated that there are trade-offs when an organization decides to use a decentralized approach of coordinating operations:
“Anyone who runs a DAO knows that they are much less efficient than traditional companies or other organizations. This trade-off in efficiency is worth it, however, for the increase in resiliency.”
“For DAOs to emerge in other areas, they’ll need to become more efficient at day-to-day decision making. There are compelling innovations in governance around subDAO and council models, but they’ll still need more time to fully emerge,” he added.
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