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Tuesday, March 28, 2023

Decentralized Autonomous Organization Statistics Show $10 Billion Is Held by DAO Treasuries

Decentralized Autonomous Organization Statistics Show $10 Billion Is Held by DAO Treasuries – Decentralized autonomous organizations (DAOs) as well as smart contracts were considered in theory throughout the early years of the cryptocurrency space.

Many people now consider the DAO to be the first smart contract-based DAO, which was launched in 2016 by members of the Slock.it development team. There will be a lot more DAOs in 2022, according to statistics, with DAO treasuries holding $10 billion.

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Smart contracts and decentralized autonomous organizations (DAOs) were imagined by a few notable cryptographers long before the concepts were introduced. Blockchain technology, together with smart contracts, opened the door for decentralized organizations following Satoshi Nakamoto’s great invention.

Many consider Ethereum developers and members of the Slock.it team to have created the first decentralized autonomous organization in 2016. The DAO raised $150 million from token sales after Stephan Tual, Simon Jentzsch, and Christoph Jentzsch unveiled the project.

Also Read: Mercadolibre Inks Partnership With Mastercard to Secure Its Crypto Ecosystem in Brazil

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The DAO, however, was hacked due to vulnerabilities in its code base, and the attacker was able to obtain millions of dollars in ethereum (ETH). “This is a problem that only affects the DAO; Ethereum is completely safe,” Vitalik Buterin remarked in June 2016. The DAO attack had little effect on the construction of DAOs, according to a report published by Consensys in September 2021, which cited 978,000 DAO members.

According to the Consensys report, “current projects include many that focus specifically on token services, community, governance, treasury management, growth, risk management, operations, and development for DAOs.”

Academic Paper on DAOs Says Concept May Introduce a New Era in Organizational Economics

According to statistics from the analytical web portal deepdao.io, the top decentralized autonomous organizations currently control $10 billion in treasury holdings. According to metrics at the time of writing, $7.1 billion is liquid and $2.9 billion is actively vested.

There are 1.7 million governance token holders and 669,000 active voters and proposal makers among the top DAOs. At the time of writing, Uniswap’s DAO has the largest treasury, with $2.2 billion, while Gnosis has the second-largest, with $1.5 billion.

Uniswap also has the most governance token holders, with 332,900 already recorded. Uniswap is followed by Decentraland, ENS, Compound, Aave, and Synthetix in terms of governance token holder numbers. Bitdao ($1.3B), Polkadot ($441.9M), and UXD protocol ($406.9M) are the treasury holdings below Uniswap and Gnosis.

In terms of treasury size, the top three DAOs now hold multiple tokens, but Polkadot’s DAO solely holds DOT. In the treasury, the UXD protocol uses five different cryptos, including the project’s algorithmic stablecoin based on the Solana blockchain. Deepdao.io statistics show that just 8,400 of the 332,900 Uniswap governance token holders are active.

Also Read: US SEC Investigating Do Kwon’s Terraform Labs and UST Collapse

Decentralized Autonomous Organization Statistics Show $10 Billion Is Held by DAO Treasuries – Gnosis has 17,700 governance token holders but just 1,500 active members, according to metrics. Users can vote on 83 governance suggestions on Uniswap, 43 governance proposals on Gnosis, and 10 governance proposals on Bitdao. Pancake Swap and Decentraland have the most proposals, with Pancake Swap having 3,300 and Decentraland, a metaverse initiative, having 1,200 governance proposals.

DAOs are now a reality, but there is much debate over how decentralized and autonomous they are. Despite significant setbacks, according to a DAO academic paper, “DAOs may usher in a new age in organizational economics, shifting the global corporate landscape from hierarchical to democratic and distributed organizations driven by organizational entrepreneurship and innovations.”

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