Tally, a prominent name in on-chain governance tools, has successfully raised $8 million in Series A funding to enhance its governance technology for decentralized autonomous organizations (DAOs).
The funds will help address voter apathy in DAOs by introducing mechanisms that reward active participants with staking options.
Recent regulatory changes in the U.S. are expected to lead to increased institutional interest in DAOs, according to CEO Dennison Bertram.
Key Highlights:
- Tally raised $8 million to boost governance technology for DAOs.
- Plans to implement staking systems to encourage voter participation.
- Anticipated growth in institutional involvement in DAOs due to recent regulatory clarifications.
Bertram elaborated on Tally’s infrastructure, stating, “We’ve built this complete stack of software for operating these on-chain organizations. We can take you from your idea to launching your token… all the way to the value accrual for your protocol.”
Initially designed as a governance tool, Tally’s platform has expanded to become a widely used software suite for on-chain operations across both Ethereum and Solana blockchains.
According to Bertram, on-chain governance could potentially simplify the organization processes, negating traditional complexities often tied to registering foundations during crypto initiatives. “Whoever embraces crypto fully might actually be embracing fully the future,” he said.
Governance Engagement Issues: Tally recognizes that low voter turnout has impeded effective governance within DAOs. For example, a controversial proposal to create a yield-bearing product by the Golden Boys within CompoundDAO faced backlash due to its low participatory rate.
“Many of the people that you should expect to vote ‘no’ on something like this didn’t show up,” Bertram remarked, emphasizing the need for improvement in the democratic process for DAOs.
To combat such issues, Tally aims to employ staking mechanisms that economic benefits to users who actively participate in governance.
Institutional Engagement in DAOs: Bertram emphasized that the increasing regulatory clarity and evolving attitudes toward crypto governance in the U.S. are paving the way for enhanced institutional involvement in DAOs.
He concludes, “Given the new acceptance of crypto as a key driver of future value in America, it’s time to scale it beyond crypto and make it a core primitive for creating new organizations.”
