Decentralized autonomous organizations (DAOs) are often managed using Blockchain smart contracts. In addition, holders determine the management of these ‘digital companies’ with their votes. Most of the voting on these altcoin projects takes place on discord.
The governance efficiency of this altcoin market exploded last year
Members of the DAOs we mentioned meet physically once in a while. However, most of their meetings are held virtually. Transactions in DAOs using blockchain technology are immutable and transparent. Examples of the most recognized DAOs are: Uniswap (UNI), ApeCoin (APE), Aave (AAVE), Maker (MAKER), DASH (DASH), Curve DAO Token (CRV), Decred (DCR), Compound ( COMP)
Snapshots Labs data revealed a huge increase in the number of DAOs over the past year. The data also show that this number is eight times higher than the previous year. According to these data, the number of DAOs increased from 700 to over 6,000 in 12 months. This number does not include DAOs without offers.
The figure was also increasing in previous years. However, the recent increase remains the highest rate. The data also shows an 8.5x increase in the number of DAO offers last year. In the same period, the total number of votes increased by 8.3 times. There are currently 3.7 million DAO votes, compared to 448,000 last year. However, the report noted that a small percentage of these DAOs support this increase in participation. The most active of these are DAOs.
Distribution of the total number of bids / Source: Emre Çalışkan About 10% of these DAOs are responsible for the majority of new bids. Unfortunately, 60% of DAOs have received no more than three new bids since they were active. A DeepDAO data also states that PancakeSwap and Decentraland are the top two DAOs by bid count.
There are 3,300 offers in the first and 1,200 in the second. The data added that up to 100 offers, there are only 72 DAOs. However, if the bill before the Senate is passed unchanged, the growth rate of DAOs is likely to slow. Part of the bill highlights that all crypto projects must have registered licenses with regulators. Also, their founders and users are required to disclose their full profiles.
An inspiration for other DAOs
Electric Capital engineer Emre Çalışkan claims that ConstitutionDAO stands out among other DAOs. This DAO became popular after the proposal to buy the original version of the US constitution. Also, the actions of this DAO have inspired many other DAOs.
ConstitutionDAO has had a great impact on many other DAOs, despite some difficulties. He showed serious effort at Sotheby’s public auction last year. Despite this, ConstitutionDAO failed in its bid to have the last original version of the US constitution. The DAO issued a lengthy message of disagreement to confirm that its bid had failed.
ConstitutionDAO’s dispute notice / Source: Discord Regulators’ concerns for bitcoin and altcoin projects
Regulators had major concerns about the ConstitutionDAO’s efforts with their proposals. A leaked draft of the US crypto bill, as featured on Kriptokoin.com, started circulating on the internet four days ago.
Parts of the draft bill show that regulators are deeply concerned about the impact of the crypto industry. They were particularly concerned about the operations of crypto exchanges and DAOs. They also voiced their concerns regarding DeFi and the stablecoin industry.
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