A Twelve-Month Analysis
Decentralized Autonomous Organizations have drastically gained numerical strength in the last twelve months. Their participation rate has equally improved in unprecedented ways in the same period of time. Nevertheless, it doesn’t look like decentralized governance is catching up with the trend.
Like DAOs, the number of proposals relating to governance has also shot up. The number of associated votes has equally risen, more so, eight folds within twelve months.
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Reports put together by Snapshot Labs state that DAOs have increased 8.8 times. They were just 700 as of May 2021 but are up to 6,000 now. According to the same report, proposals have gone up 8.5 times, votes 8.3 times.
The report which was distributed by Emre Calliskan has it that votes went from 448,00 to 3.7 million. Emre Caliskan is an Electric Capital Engineer.
Snapshot is a governance engagement portal for DAO members to suggest new ideas and vote. The report was put together in conjunction with the web 3 investment company, Electric Capital.
While the results look good, the increased participation was spearheaded by a few active DAOs. The latest proposals came from only 10% of DAOs. Whereas, 60% of total DAOs had no more than proposals since the beginning.
However, the total growth is indicative of improved confidence around DAO structures. And it shows the promise of decentralized governance.
Another DAO-tracking platform, DeepDAO, differs a little bit in its figures. It shows that there are just 4,833 DAOs in operation by the 10th of June.
According to Caliskan, the increased fresh proposals can be connected with popularity. It can also be linked to the broad coverage of the DAO Constitution. The organization was set up in November 2021 with the plan of purchasing a copy of the original US constitution.
It was eventually outbid but it demonstrated the power accruable to such an organization.
As reported by DeepDAO, Decentraland and PancakeSwap are the top two DAOs. They have 1,200 and 3,300 proposals respectively. Only the leading 72 organizations possess a minimum of 100 proposals currently.
In spite of the total number of DAO promises in growth, a US Senate bill might limit the growth. The bill was introduced on the 7th of June and would be implemented if no changes happen.
The bill calls for every crypto project to be registered with regulators. It also demands that the identities of its founders and users be made available to the government.