In the early years of the cryptocurrency space, decentralized autonomous organizations (DAOs) and smart contracts were theoretically discussed. Launched in 2016 by members of the Slock.it development team, many people now consider The DAO to be the first DAO based on smart contracts. The DAO will be much larger in 2022 as statistics show that $10 billion is in DAO treasuries.
Thousands of DAOs, $10 billion in treasuries, 1.7 million governance token holders
Long before these concepts were introduced, smart contracts and decentralized autonomous organizations (DAOs) were the brains of several legendary cryptographers. Following Satoshi Nakamoto great inventionBlockchain technology combined with smart contracts has opened the door for decentralized organizations.
In 2016, Ethereum developers and members of the Slock.it team created what many refer and quote as the first decentralized autonomous organization. After Stefan Tual, Simon Jench and Christoph Jench announced DAOthe project managed to raise $150 million from the sold tokens.
However, due to vulnerabilities in the codebase, The DAO was hacked, and the attacker managed to siphon millions of dollars in Ethereum (Ethereum). “This is an issue that specifically affects the DAO; Ethereum itself is completely secure,” said Vitalik Buterin in June 2016. The DAO attack did not stop the creation of the DAO because report published in September 2021 by Consensys recorded “978,000 DAO members”.
“Current projects include many that focus solely on token services, governance, treasury management, risk management, growth, community, operations, and development for the DAO,” Consensys said in a report.
An academic paper on DAO says the concept “could usher in a new era in organizational economics”
Statistics from the analytical web portal Deepdao.io shows that today the leading decentralized autonomous organizations hold a value of $10 billion in terms of treasury assets. According to figures at the time of writing, $7.1 billion is liquid and $2.9 billion is currently owned.
Of the leading DAOs, there are 1.7 million holders of governance tokens and 669,000 active voters and proposers. DAO Uniswap has the largest treasury at the time of writing at $2.2 billion, while Gnosis is the second largest with $1.5 billion.
Uniswap also has the largest number of governance token holders with 332,900 registered to date. In terms of governance token holders, Uniswap is followed by Decentraland, Compound, ENS, Aave, and Synthetix. Below Uniswap and Gnosis treasury holdings are Bitdao ($1.3B), Polkadot ($441.9M) and UXD protocol ($406.9M).
Today, the top three DAOs in terms of treasury size hold multiple tokens, while the Polkadot DAO holds only DOT. The UXD protocol uses five different cryptocurrencies in the treasury, including the project’s algorithmic stablecoin based on the Solana blockchain. Deepdao.io statistics show that out of 332,900 Uniswap Governance Token holders, there are only 8,400 active members.
The metrics show that Gnosis has 17,700 governance token holders, but only 1,500 active members. Uniswap has 83 governance proposals, Gnosis has 43 proposals, and Bitdao currently has 10 proposals for users to vote on. Pancake Swap and Decentraland have the most proposals, Pancake Swap has 3,300, and the Decentraland metaverse project has 1,200 governance proposals.
DAOs have definitely become a reality now, but there are a lot of controversy how decentralized and autonomous they really are. Despite some setbacks, academic paper on DAO says that overall, “DAOs can usher in a new era in organizational economics by transforming the global corporate landscape from hierarchical organizations to democratic and distributed organizations based on organizational entrepreneurship and innovation.”
What do you think of the thousands of DAOs today and the $10 billion held in DAO treasuries? Let us know what you think about it in the comments section below.
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Credit : news.bitcoin.com