Syndicate Protocol Creates 450 new DAO’s in Three Weeks

syndicate protocol

Bob Coiney

February 17, 2022

Decentralized autonomous organizations are changing the way we think about how organizations work, and how they may work in the future. Because of their unique structure, DAOs offer the promise of enabling a focus on community, rather than just profit, and might offer a more socially conscious structure. Realizing DAOs in the real world will require overcoming significant hurdles but the motivation to organize companies differently exists, and the potential benefits are undeniable. 

Companies using DAO platforms to compartmentalize and automate certain parts of their business can achieve fast scalability and be leaner without sacrificing the quality of service. However, there are a few obstacles that make a true DAO difficult to achieve, for now. The idea of a self-governing system requires increasing degrees of complexity with each passing day. Businesses are not getting any simpler, and so a properly self-governing DAO has much more to consider when it comes to smooth, fair operation. While these facts unwind, Syndicate Protocol took a spotlight on the international scene, creating 450 new DAO’s within a short time frame.

What to know About Syndicate

Syndicate, a DAO creation platform that has landed investments from A13Z and Coinbase Ventures, among others is an organization with a goal to democratize investing by allowing groups to establish decentralized investment structures. It automates the process on-chain, allowing anyone to set up an investing DAO in under a minute for just the cost of gas. DAOs can also plug in compliance tooling, to help keep everything in accordance with regulations. Blockchain-based investing protocol Syndicate claims that 10% of all decentralized autonomous organizations (DAO) in existence have been created on its platform in less than three weeks of operation.

Let’s keep the Wine bottles Open

It’s a big feat for Syndicate as it could not hold back how overwhelmed it is. Will Papper, co-founder of Syndicate explained to Cointelegraph just recently that the project had created 450 investment clubs as DAOs, which is just a little bit over 10% of the “best estimates” of 4227 DAOs in existence, based on DeepDAO’s metrics and figures reported in Forbes. The milestone in Syndicate’s journey may indicate that the DAO governance structure will become more common in blockchain and beyond.

The gold rush of new organizations at Syndicate indicates that the DAO governance structure has gained popularity since their broad introduction to the crypto mainstream just a couple of years ago. Currently, the two top DAOs are BitDAO (BIT) and Uniswap (UNI). Uniswap DAO was formed in 2020 and BitDAO in 2021. They now command a collective $4.4 billion in treasury funds.

Thrills and Glamor from Co-founder

Anyone who runs a DAO knows that they are much less efficient than traditional companies or other organizations. This trade-off in efficiency is worth it, however, for the increase in resiliency. 

Being a little above his happy feet, the Co-founder, Papper said that the team believes DAOs are one of the most powerful structures for coordination that he has seen. He added that their utilization in governing businesses and clubs will become more common over time.