DAO Report Shows 8x Growth In 12 Months

Decentralized Autonomous Organizations (DAOs) are becoming the “company” of Metaverse. These digital companies are operated by blockchain smart contracts and governed by shareholder votes through Discord. Most are completely online, and members rarely meet face-to-face. Blockchain technology forms the basis of operations for the DAO, making all transactions transparent and immutable.

Amazing growth

The total number of DAOs increased significantly over the past 12 months. Data compiled by Snapshot Labs and shared by Electric Capital Engineer Emre Caliskan highlighted the metric in a June 9 tweet.

The total number increased significantly over the past year, more than 8 times from 700 in May 2021 to more than 6000 to date (excluding DAOs without proposals). The number of proposals increased 8.5 times and the total number of votes increased 8.3 times in 12 months, from 448,000 to 3.7 million.

While the growth over the years has been commendable, only a handful of the most active has driven increased participation. New proposals have mainly come from just 10% of total DAOs, while 60% have had 3 or fewer proposals since inception.

Among them, there is an organization that really stands out. According to Emre Caliskan, “The constitutional DAO is a pivotal moment.” It’s an organization founded last November for the purpose of purchasing the original copy of the US Constitution. Moreover, it even inspired new DAOs that came out afterward.

Indeed, the impact is significant, especially after a few major hiccups. This online group failed in an attempt to purchase the last privately owned first edition of the US Constitution at a public auction held by Sotheby’s last year.

Issues of concern

As CoinCu reported, the U.S. crypto-related leak bill that circulated on June 7 highlighted several key areas of interest to regulators including DeFi, stablecoins, DAOs, and trading platforms. As such, investors have reason to be cautious.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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