DAOs grew seemingly overnight. With governance tokens, we see huge treasuries and many members. But, who keeps track of these developments? How do they collate the data and what future direction will DAOs take?
Have a look at our report on how DAOs will shape the world from a different panel at GeckoCon. The panel for this ‘Projecting the Growth of DAOs’ consists of.
- Mahesh Murthy—Moderator and founder at Karma.
- Hugo Sanchez—Growth Manager at Dune Analytics.
- Dennison Bertram—CEO at Tally.
- Eyal Eithcowich—Founder at DeepDAO.
What Is a DAO?
Hugo: Any kind of group of people that uses smart contracts to coordinate their actions. But does it need a formal governance process?
Eyal: A group of people who manage assets together, working towards a goal. Like NFTs or a treasury. DeepDAO requires some sort of governance before you can get listed.
Dennison: His view turned liberal. As long as you intend to be a DAO, you’re a DAO.
What Are the Metrics to Determine Growth of a DAO?
The panel agrees on the size of the treasury being important. But also, on how often people work on making decisions. How many contributors, voters, and votes are there?
Mahesh notes that the number of DAOs doesn’t increase. However, they put more governance in place. Is that good, or would they also like to see more DAOs?
There should be more DAOs, making more decisions. They also need a big treasury, so they can deploy funds and grow.
In this section for the next handful of questions, one person answered the question with the other panelists in agreement. We go back to identifying the panelists by name when more than one has an answer or differing opinions on a question.
What Kind of Exciting Experiments Have You Seen?
The panelists said the scale of experimenting is spectacular. For example, token holding. Although it may be plutocratic or centralized, it’s still a good experiment. Furthermore, we see convention voting or delegation. We may even see a combination of all these.
WE believe #DAOs can radically change the governance status quo
But did YOU know there are many types of DAOs out there?
— StakeBorgDAO (@stakeborgdao) July 5, 2022
How Do You See the 1 Token, 1 Vote vs 1 Person,1 Vote Discussion?
Decentralized Autonomous Organizations require standardization. This enables new people to join the space and understand what’s going on. The panelists all agreed here.
So, Should There Be More Experimentation?
There’s already a lot of experimentation going on, but they are always happy to see more. However, DAOs tend to experiment more when they have a smaller treasury.
How Do You See DAOs Growing?
The number of DAOs will keep growing, A number of 6 million in the near future is possible. Total treasury may well reach $100 billion. Another good thing is that DAOs can easily scale from 1 person to 1 million. Because they are very composable and fractal. There are also people building DAOs that are not into Web 3. Dennison hopes for a 5x growth for next year. Hugo would like to see DAOs in real life. In the next 5 years, for instance, governance in municipalities. In 10 years, he wants to see a country as a DAO.
Do Various DAOs Equally Grow?
Experiments are growing. DAOs are new and will grow into many new places. For example, those that are currently legacy organizations. It’s easy to start and manage a DAO, set up a treasury and fund it.
Is the Lack of Legal Clarity Hindering the Growth of DAOs?
Lack of clarity is definitely holding back growth. It’s frustrating. It also puts people off from making something exciting. Decentralized Autonomous Organizations need to know what equals a security or an equity share. Governments seem to rather sit back and come after you at a later stage. That’s in contrast to making things clear from the start.
Besides this, there are also other factors. For example, new tools that are being built that slow down growth. Crypto adoption will increase DAO growth.
How Do You See the Current Growth of DAOs?
Dennison: the growth is healthy. Build DAOs, use the tools that exist, and experiment.
Hugo is excited to engage with Decentralized Autonomous Organizations and experiment. He is also excited about the new breed of relationships which is business to DAOs. Eyal says to start a DAO, join one, and most importantly, vote in a DAO.
Do You Struggle to Keep Track of the DAO Government Proposals?
DeepDAO struggles to keep track of all the different and new DAOs. They also have different levels of maturity and government systems. It’s challenging and interesting, but not easy.
How Do We Get Involved in DAOs? Where Do We Need to Look?
Tally has many blog posts on the subject. A recent one deals with how to join a DAO. That is a good starting point. Twitter is also a good source.
no matter how simple or complex your DAO problem
the Tally team has got you covered 🤝 pic.twitter.com/rQ5hrFXqbO
— Tally (@tallyxyz) July 14, 2022
Are There Situations When DAOs Don’t Make Sense?
You don’t know until you try. DAOs are not finished yet. Maybe you must build your very own DAO. If you can’t think of the why perhaps you’re not creative enough. Or a DAO doesn’t apply.
If you don’t manage many assets, you may not need a DAO. Or, if you are looking at a 5-minute situation. However, if you like to work with other people or friends, a DAO makes sense.
Is Using an Email List Anti Web 3?
It is anti-Web 3, but people still like to use it. But there is a need for notifications. If you wonder how to keep up with all the DAOs, you probably haven’t found the DAO that fits you.
Once more, an interesting discussion on the current state of DAOs and how they will grow. Plenty of ideas and samples were given by the panel. The bottom line is that the panel expects steady growth of DAOs.
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