The total number of DAOs has expanded considerably in the last year, as has their participation rate, but this does not necessarily imply that decentralized governance is gaining traction.
The overall number of decentralized autonomous organizations (DAO), the number of governance proposals submitted, and the number of votes cast have all increased eightfold in the last year.
According to Snapshot Labs data, which was released by Electric Capital Engineer Emre Caliskan in a Thursday tweet, the number of DAOs has expanded by 8.8 times, from 700 in May 2021 to 6,000 presently. Over the last year, the number of proposals has increased by 8.5 times, and the total number of votes has climbed by 8.3 times, from 448,000 to 3.7 million.
Snapshot is a decentralized governance participation portal where DAO members can propose and vote on new projects. Electric Capital, a Web3 investment firm, was assisted in compiling the data.
While the data appears to be encouraging for decentralized governance models, the growth in involvement was driven by only a small number of the most active DAOs. Only 10% of DAOs submitted new proposals, while 60% of DAOs received three or fewer proposals since their creation.
Nonetheless, the overall rise is an outstanding demonstration of trust in the DAO system.
DeepDAO, a rival DAO tracking tool, has somewhat different data and displays only 4,833 DAOS as of Friday.
Caliskan attributed the growth in new proposals to ConstitutionDAO’s popularity and broad coverage. It was a non-profit organization founded in November with the goal of purchasing an original copy of the United States Constitution. The DAO was outbid at the last minute, but it demonstrated the power that such groups may wield.
DeepDAO lists PancakeSwap and Decentraland as the top two DAOs in terms of proposal count, with 3,300 and 1,200, respectively. At the time of writing, only the top 72 organizations had at least 100 proposals.
Despite the overall encouraging results for DAO growth, a draft measure released by the United States Senate on Tuesday may limit their expansion if no adjustments are made. It initially requests that all cryptocurrency ventures register with the government and expose the identity of its users and founders.