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News- Will Papper, the co-founder of Syndicate, stated that the project has formed 450 investment clubs as DAOs.
- Syndicate, a blockchain-based investment protocol, says that its platform, in less than three weeks of operation, has established 10% of all decentralized autonomous organizations (DAO) in existence.
Will Papper, the co-founder of Syndicate, told Cointelegraph today that the project has formed 450 investment clubs as DAOs, which is little more than 10% of the “best estimates” of 4227 DAOs in existence, according to DeepDAO’s measurements and data cited in Forbes.
The Syndicate milestone might indicate that DAO governance models will become more common in blockchain and beyond.
A13Z and Coinbase Ventures, among others, have invested in Syndicate, a DAO building platform. The team announced in a tweet on February 15th.
Know why DAOs are “the most effective frameworks” We’ve seen
The quick flood of new organizations at Syndicate suggests that the DAO governance structure has grown in popularity since its initial debut in the crypto mainstream just a few years ago. BitDAO (BIT) and Uniswap are now the two most popular DAOs (UNI). They currently control a total of $4.4 billion in treasury money.
Papper believes that DAOs are “one of the most effective frameworks for coordination that we’ve seen,” and that their use in controlling firms and groups will become more popular in the future.
The declared purpose of Syndicate is to democratize investing by allowing organizations to create decentralized investment arrangements. It automates the process on-chain, letting anybody create an investing DAO in under a minute for as little as $1.
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Governments accepting DAO
Although there are basic benefits to coordinating under a DAO, Papper notes that there are still problems in their mechanics to sort out: “For DAOs to emerge in other domains, they’ll need to become more effective at day-to-day decision making.” There are compelling governance innovations centered on subDAO and council models, but they will take time to fully materialize.“
The Republic of the Marshall Islands became the first sovereign government to recognize DAOs as legal organizations this week.
Papper, on the other hand, stated that there are trade-offs when an organization decides to use a decentralized manner of coordinating operations.
The Syndicate team refused to release a list of the groups that have been formed using the platform, explaining, “We don’t store information about our users since everything works on decentralized smart contracts and to safeguard their privacy.” Papper, on the other hand, stated that the information could be checked on-chain.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
