More Than $11,000,000,000 held by DAO Treasuries Now
Key things Messari data shows that DAOs will have $ 11 billion by the end of 2021, with $ 15 billion held by the 15 largest DAOs. Gross margin ($ 11 billion) represents a 40-fold increase in the DAO Treasury during 2021. Messari warned that the composition of the fund could affect the strength of the DAO, as token prices fluctuate.
Messari data shows that DAOs will have $ 11 billion by the end of 2021, with $ 15 billion held by the 15 largest DAOs.
Gross margin ($ 11 billion) represents a 40-fold increase in the DAO Treasury during 2021.
Messari warned that the composition of the fund could affect the strength of the DAO, as token prices fluctuate.
DAO Treasuries reached $ 11 billion
DAO reserves will accumulate more than $ 11 billion in cryptocurrency by the end of 2021, Messari said on Tuesday.
Although this amount is spread over thousands of DAOs, the 15 largest DAOs have a total value of $ 7 billion.
Only two treasuries - owned by BitDAO and Uniswap - have a total value of $ 4.2 billion, each with nearly $ 2 billion. Other major DAOs include popular DeFi platforms such as Aave, Synthetix, Maker, Yearn and more.
The total amount held by the DAO at the end of 2021 is 40 times greater than at the beginning of the year. At the time, stores had an estimated $ 275 million.
Disruption of the fund affects stability
Messari divides DAO assets into three asset categories: domestic tokens, deposits in other protocols, and other crypto assets.
This destruction of real estate affects the economics of the project. "Holding a large number of native tokens means that price changes may further affect the value of the treasury," Mesari said.
It was noted that Uniswap had a repository consisting almost exclusively of native tokens. As such, it warns that Uniswap is in a "safe area" if its own UNI token fails.
Other treasures consisting of more than 99% native traits include Gnosis, Maker and Abracadabra.
Messari also found that small deposits of less than $ 125 million are likely to contain stablecoins. Deposits Aave, Maker, APi3, Abracadabra and Yearn contain 95% stable coins after removing the protocol's native asset.
In a separate article, Messari stated that DAOs "have a reason to trade for stablecoins or invest in other projects" to avoid the risks of filling the warehouse with native tokens. The rise of DAO
Decentralized autonomous organizations have existed since 2016. Although the first DAO failed because it was hacked, the model became an important part of the Ethereum ecosystem.
Typically, DAOs act as management protocols: they allow token holders to vote in the direction of a project's blockchain or to vote on storage costs.
Many DAOs have been used to raise funds in recent months. Examples include the fundraiser for Ukraine, Wikileaks founder Julian Assange and Silk Road founder Ross Ulbricht. Sites like Juicebox make it easier for individuals to manage such collections.
However, the largest DAO is still used to manage blockchain projects, as the Messari data above shows.
Disclosure: At the time of writing, the author of this article owns BTC, ETH, and other cryptocurrencies.