When it comes to blockchain technology, there are some organizations that show their undying support and assistance towards the creation of a decentralized system.
A syndicate Protocol can definitely be included in the list of platforms that are centered in the creation of a proper blockchain and decentralized system for sure. Data gathered from CBN news today on cryptocurrency has mentioned that Syndicate has a huge role to play in the establishment of DAOs all over the world.
A huge feather in the cap for the journey of this platform has made an indication that the governance structure of DAO will definitely become more and more common in the world of blockchain and beyond that as well.
The investing protocol is known as Syndicate and is blockchain-based has made a claim that about 10% of the different DAOs or Decentralized Autonomous Organizations that currently exist in the world have been skillfully created with the help of this particular platform and that too under just 3 weeks of proper operations.
Syndicate can only be described as a proper platform for the creation of DAOs and it has managed to land some investments from Coinbase Ventures and AI3Z, apart from the other companies as well. In a tweet made by the team of Syndicate on the 15th of February, the development was completely revealed.
Will Papper who is the co-founder of Syndicate talked to Cointelegraph in an interview that this particular project has managed to create about 450 different clubs such as DAOs which is just about 10% of the total of about 4227 DAOs that currently exist in the world. All this information is based on the metrics provided by DeepDAO which is a tool for the analysis of different DAOs.
The rapid influx 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.
The Republic of the Marshall Islands this week became the first sovereign nation to officially recognize DAOs as legal entities.
Syndicate’s stated goal is 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.
Papper said that the team believes DAOs are “one of the most powerful structures for coordination that we’ve seen,” and that their utilization in governing businesses and clubs will become more common over time.
However, Papper said that there are trade-offs when an organization decides to utilize a decentralized method of coordinating efforts. “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.”
Although there are inherent benefits to coordinating under a DAO, Papper added there are still kinks to be worked out in their mechanics: “For DAOs to emerge in other areas, they’ll need to become more efficient at day-to-day decision making. There are compelling innovations in governance around subDAO and council models, but they’ll still need more time to fully emerge.”
The Syndicate team did not provide a list of the organizations that had been created through the platform, mentioning, “We don’t maintain information about our users as everything runs on decentralized smart contracts and to protect their privacy.” However, Papper said the information could be verified on-chain.