The amount in treasuries of Decentralized Autonomous Organizations (DAOs) has reached a new milestone of $25 billion, as reported by DeepDAO. Arbitrum’s particular DAO launching two weeks ago is said to have pushed this figure, in particular to its impressive number. Surrounding the largest treasuries, one might note that three of the five top projects are scaling plays such as Optimism, Arbitrum, and Polygon instead of the previously most popular choice of DeFi projects.
The source of such significant profitability isn't simply restricted to token drops and the formation of more DAOs. Optimism’s OP, Arbitrum’s ARB, and Polygon’s MATIC are some of the most common native tokens being held in these treasuries. Aman Deep, the head of growth for DeepDAO, supposes that the market conditions will help these tokens reach new heights and that their final target is $100 billion in production - which by his estimates, is only an era away.
Other than the market booms, it is reasonable to assume that usage following these treasuries will begin to increase. Lido Finance, for example, splits 10% of the user’s staking rewards between the treasury and node operators as a means of generating more revenue. Moreover, some DAOs are also said to be able to garner more funds through Sequencers, by charging a fee when processing transactions between layer-2 scaling solutions and the Ethereum mainnet.
Last but not least, DAO holders should be aware of their roles and when faced with a challenge of governance, should partake in it actively. Igneus Terrenus, the public liaison of BitDAO, stipulates that with the growing consciousness amongst particpiants, issues like the Uniswap bridge and Arbitrum AIP-1 debates will be playing a crucial part in the blossoming of these treasuries.
Rolling up to $100 billion and possibly more, it is notable that DAOs will need to be fueled by a speculative boom, increased usage, and holders of the tokens becoming aware of their roles in the DAO. These measures all seem to be contributing to a blooming DAO landscape and could strongly result in inevitable profit for all of the treasuries in the future.
Joseph Ruiz
- 2023-04-08
DAO Treasuries Reach New Milestone of $25 Billion
Decentralized Autonomous Organizations treasuries have reached a new milestone of $25 billion, according to DeepDAO. Tokens such as Optimism’s OP, Arbitrum’s ARB, and Polygon’s MATIC are some of the most common native tokens being held in these treasuries.
