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The number of decentralized autonomous organizations have increased by 700% in 12 months

Data compiled by Snapshot Labs, shared by Electric Capital Engineer Emre Caliskan, reveals that the total number of decentralized autonomous organizations (DAOs), alongside the number of governance proposals put forward and the number of votes cast, have all seen astounding 800% growth over the past 12 months.

Simply put, DAOs are member-owned communities without centralized leadership. You can think of them as an internet-native business that’s collectively owned and managed by its members. They have built-in treasuries that no one has the authority to access without the approval of the group. Decisions are governed by proposals and voting to ensure everyone in the organization has a voice.

The data highlighted that DAO numbers have increased by 757%, from 700 in May 2021 to 6,000 now. The number of proposals has increased by 745%, and the number of total votes has increased by 525% over the past 12 months, from 448,000 to 3.7 million.

What you should know

Despite the overall promising numbers in DAO growth, a June 7 draft bill from the US Senate could curtail their growth if no changes are made to it. It initially calls for all crypto projects to register with the government and reveal the identities of their users and founders.