Syndicate Protocol Helps Create 450 New DAOs in Just Three Weeks

Blockchain-based investment protocol Syndicate claims that 10% of all decentralized autonomous organizations (DAOs) in existence were created in less than three weeks of operation on its platform.

Syndicate, a DAO creation platform, has received investment from companies such as A13Z and Coinbase Ventures. The team revealed the development in a tweet on February 15.

As of this morning, 10% of *all* DAOs have now been created on SyndicateDAO.

in less than 3 weeks

And this is just the beginning.

— Syndicate✺ (@SyndicateDAO) February 14, 2022

Syndicate co-founder Will Papper explained to Cointelegraph that the project has created 450 investment clubs as DAOs, which according to “best estimates” only accounts for 4,227 existing DAOs, according to metrics and data from DeepDAO reported by Forbes A little over 10% of a DAO.

DeepDAO is an analytics tool that tracks decentralized organizations.

The rapid influx of new Syndicate organizations shows how popular the DAO governance structure has become since it was widely introduced into the crypto mainstream a few years ago. Currently, the two largest DAOs are BitDAO (BIT) and Uniswap (UNI). Uniswap DAO was established in 2020 and BitDAO in 2021. They now control a combined $4.4 billion.

The Republic of the Marshall Islands this week became the first sovereign nation to officially recognize The DAO as a legal entity.

Syndicate's goal is to democratize investing by allowing organizations to build decentralized investment structures. It automates on-chain processes, allowing anyone to set up an investment DAO in under a minute, all at a cost of gas. DAOs can also plug in compliance tools to help keep everything compliant.

Papper said his team believes DAOs are "one of the most powerful coordination structures it has ever seen," and that their use in managing businesses and clubs will become more common over time.

However, there are trade-offs when an organization decides to use a decentralized approach to coordinate work, Papper said.

“Anyone who has run a DAO knows that they are significantly less efficient than traditional corporations or other organizations. However, this trade-off in efficiency is worth it for the sake of resiliency.”

Papper added that despite the inherent benefits of coordinating under DAOs, there are still some kinks to be ironed out in their mechanics:

“For DAOs to emerge in other areas, they need to become more efficient in day-to-day decision-making. There are compelling innovations in governance around subDAOs and committee models, but they will still take more time to fully emerge. "

The Syndicate team did not provide a list of organizations created through the platform, saying: “We do not maintain user information because everything runs on decentralized smart contracts to protect their privacy.” However, Papper said , this information can be verified on-chain.

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