Over 259 new DAOs were created in a week according to a report earlier this month.
I am beginning to see the start of a mature DAO landscape. DAOs are being taken seriously, and the model is proving it can work in executing complex strategic business decisions.
For instance, The Arbitrum Foundation DAO, one of the largest DAOs by treasury size, recently voted positively to experiment with a feasibility study for an M&A arm. If successful, with its massive cash chest of over ~$3 billion, it could go on a shopping spree. This is unprecedented, as no other business has done this in a decentralized space before. This development validates that DAO models can indeed work in formulating and executing complex business decisions.
Also, I find a few trends that are helping the rise of DAOs:
The maturing DAO platform ecosystem: The emergence of more advanced DAO tools than ever before is enabling more efficient DAO operations. Nowadays, there are adequate tools for infrastructure, governance, treasury, analytics, AI-enabled tools, and more.
The growth of sub-groups led by subject matter experts within DAOs: In our Arbitrum case above, a sub-group called the "Arbitrum M&A working group," comprising M&A subject matter experts, is taking charge.
Positive moves by regulators regarding DAOs: A couple of months ago, the governments of Wyoming and Tennessee passed new legal framework for DAOs. This is great because it provides a blueprint for other governments across the globe to follow.
It wouldn't surprise me if every Web3 brand eventually create its own DAO. It gives their community members more purpose and puts their skin in the game.
But will DAO disrupt traditional businesses?😉
Let me know in the comment.
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