Over the past 12 months, the number of decentralized autonomous organizations (DAO) increased more than eight times. The growth is proportional to the rate of community participation. However, it doesn’t imply that decentralized governance is following suit.
Emre Caliskan Reveal Crypto Market Growth
Emre Caliskan, an Engineer from Electric Capital on Twitter, discussed the level of growth of DAOs in the DeFi ecosystem. In his tweet, the number of decentralized autonomous organizations expanded from 700 last May to over 6,000. This is an 8.8 times growth in one full year.
Also, he stated that votes increased from 448,800 to about 3.7 million, an 8.3 times growth. Then, the number of proposals also expanded by over 8.5 times.
Related Reading | Shock And Awe: Bitcoin Lightning Network Capacity Reaches New ATH
He referenced the data from Snapshot, a distributed governance participation platform that allows decentralized autonomous organization members to suggest new decisions and vote on them. Snapshot, alongside Electric Capital, collated the data.
Although the study shows a significant and compelling opportunity for Defi governance models, the growth can be attested to some of the most hyperactive decentralized autonomous organizations.
The new proposals emerged from only 10% of DAOs, whereas 60% had less than three proposals since they were established. Nevertheless, the growth is still worth recognizing as it reveals users’ hope in the DAO framework.
DeepDAO’s Comment On DAO Growth
Another platform showed a pretty different record from Snapshot. DeepDAO, a data analytics and tracking tool, displayed that the number of DAOs in the DeFi ecosystem is only 4,833 per report.
In addition, DeepDAO stated that the only leading decentralized autonomous organizations with high proposal counts include PancakeSwap and Decentraland, which had an over-proposal count of 1,200 and 3,300. Also, only about 72 DAOs have proposal counts of 100.
A decentralized autonomous organization is a crypto entity that isn’t owned and controlled by one central body or individual. Instead, decision-making is governed by the community via voting for a particular period. Notably, decentralized autonomous organizations are hosted and built over the internet. DAOs function without any hierarchical structure and can be used for many purposes.
Caliskan explained that the growth in proposals is because of the fame and wide adoption of the Constitution decentralized autonomous organizations. It was established in November 2021 with the primary aim to buy one original copy of the US constitution. However, the decentralized autonomous organizations were outbid at the dying minute. Regardless, this shows the high potency of decentralized autonomous organizations.
Related Reading | Jim Cramer Says You Shouldn’t Borrow Money To Buy Bitcoin, Here’s Why
Also, no matter the increase in decentralized autonomous organizations, if there are no changes effected it, the US Parliament could regulate its growth. This implies that cryptocurrency projects within the US must register with the government and provide the identities of the members and founders.
Featured image from Pexels, chart from TradingView.com