13 pictures to restore the savage growth of DAO

In the past year, the concept of DAO has experienced explosive growth. The number of various DAOs has increased by 8.8 times in one year, the number of related proposal submissions has increased by 8.5 times, and the number of votes has also increased by 8.3 times.

This article will describe the latest transcripts belonging to DAO through the changes of more than ten key data.

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In the past year or so, the number of DAOs with valid proposals has surged from more than 700 to more than 6,000. It took a year to go from 0 to 1000, 3 months from 1000 to 2000, 2 months from 2000 to 3000, and only half a year from 4000 to 6000.

Although the growth rate of DAOs has slowed down slightly recently, this continued growth momentum is still eye-catching. So what caused the outbreak in late November last year? In fact, the answer is the emergence of ConstitutionDAO and its rapid popularity. This event attracted the attention of a large number of market participants to DAO and DAO governance, and inspired many people to devote themselves to the construction of DAO.

However, it is worth noting that although the proposal activity has grown significantly, it is still driven by a small number of people. According to statistics, 65% of all proposals in the market come from 10% of DAOs, and as of the time of publication, 60% of DAOs have voted on only 3 or less proposals.

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In addition to the rapid increase in the number of proposals themselves, the number of people participating in governance voting has also grown significantly, from 448,000 to 3.7 million in the one-year period from May last year to May this year, an increase of 8.3 times. Although the peak number of monthly votes has declined compared to November last year, it still maintains a considerable increase compared to the first half of last year.

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Regarding specific voting behavior, about 50% of users have only participated in one governance vote, and 75% of users have only participated in one DAO governance vote. Another point to note is that it is possible for a user to vote for different DAOs using different wallets, which is difficult to monitor effectively.

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A more reasonable analysis method is the repeated voting behavior of one DAO by one address in the system, but the results have not actually changed significantly. About 55% of the wallet addresses have only voted for one DAO once.

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Of course, there are some exceptions. There are some DAO members who are very keen on governance voting. The members of these DAOs in the table below have voted more than 10 times on average.

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There is also a very interesting phenomenon that some early participants have become the “star governors” of the DAO, and even a few users have more than 2,000 voting rights in a single DAO.

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Some time ago, @optimismPBC directly removed a proposal proposed by @cobie, which caused a heated discussion in the market. A key question is how decentralized the DAO governance is. If the organization is actually centralized, it would naturally violate the DAO’s inception principles.

We can use Gini coef to measure how decentralized a DAO governance is. Gini coef is a measure of income equality and can also be used to “judgment” DAOs, where 1 means highly centralized and 0 means highly decentralized. As a simple example, if user A has 1 vote, B has 1 vote, and C has 10 votes in a governance vote. The Gini coef is 1 if only A participated in the vote, and the Gini coef is 0 if both A and B participated in the vote.

In fact, the final results of most DAO proposals are heavily biased in favor of a small number of strong voters, with about 25% of proposals having a Gini coef greater than or equal to 0.8.

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The good news though is that DAO governance seems to be heading in the right direction, with the average Gini coef falling by around 23% over the past year, from 0.81 to 0.62.

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From the results, about 1000 proposals ended up winning by a narrow margin of less than 60%.

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I think it’s very valuable to be able to have a healthy debate before arriving at the final governance outcome, and these DAOs in the graph below are some of the cases where the gap between pro and con in governance is minimal.

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Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/13-pictures-to-restore-the-savage-growth-of-dao/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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