Jamal Al-Farouq More than seven years have elapsed since the genesis of the first decentralized autonomous organization (DAO) on April 30, 2016—a pivotal milestone in the digital asset realm. Yet, this initial venture met an abrupt end due to a cyberattack within three months of its formation. The current situation is starkly different, characterized by the robust growth of numerous DAOs. Presently, there are 179 DAO treasuries each overseeing more than $1 million in assets, cumulatively holding $18 billion in both liquid and locked assets. As of the year 2023, the five leading DAO treasuries account for $11 billion, distributed across a multitude of token assets.
Table Of Contents
Prominent DAOs of 2023
The crypto winter has adversely affected multiple segments within the digital asset sphere, but DAOs have demonstrated resilience and growth. Fundamentally, a DAO operates as a digital governance structure, regulated by smart contracts and with its proceedings recorded on a blockchain. Currently, 179 DAO entities manage assets exceeding $1 million. This article furnishes a comprehensive analysis of the top five DAOs as of 2023.
On April 15, 2022, the valuation of the entire DAO ecosystem stood at $10.8 billion. This figure has seen a remarkable uptick to $18 billion as of the current date. The composition of top-ranking DAOs underwent changes throughout 2022. Initially, Uniswap and Bitdao—now rebranded as Mantle—held preeminent positions. However, the dynamics have shifted, with new entities like Uxd Protocol, Mango DAO, and Lido’s DAO being displaced from the top five.
Arbitrum DAO
Arbitrum DAO, boasting the most substantial treasury among DAOs, employs a community-oriented governance structure facilitated by its native arbitrum (ARB) token. This organization has strong ties with Arbitrum, an Ethereum layer-two (L2) scaling network. Arbitrum DAO not only focuses on governance but also manages an extensive treasury and security council to optimize its operations. At present, the treasury safeguards a diverse portfolio of assets, estimated at $3.4 billion, comprising ARB and several stablecoins.
Optimism Collective
The majority of DAOs predominantly hold their native tokens, but a significant number have ventured into stablecoin assets. The Optimism Collective, ranking second in assets under management (AUM), is linked to the L2 scaling solution Optimism. This DAO’s treasury holds an array of assets valued at $3.1 billion, including its native governance token, OP. The governance of Optimism DAO is a collaborative effort between two distinct bodies: the Citizens’ House and the Token House.
Mantle
While Arbitrum and Optimism focus on optimizing their networks for treasury functionality, Mantle, positioned as the third-largest DAO, administers $2 billion in AUM. It employs the Mantle network for its treasury operations. Originally launched as Bitdao in August 2021, the organization transitioned to Mantle following a governance vote conducted on May 19, 2023.
Uniswap DAO
Securing the fourth rank in 2023, the Uniswap DAO governs a treasury currently valued at $1.7 billion. It is closely affiliated with the Uniswap decentralized exchange (DEX) and holds a mix of its native token, UNI, and several fiat-linked tokens. Decision-making and protocol alterations within this organization are facilitated through the use of UNI tokens.
Gnosis DAO
Rounding out the top five is Gnosis DAO, with a primary focus on enhancing the Ethereum ecosystem. It has been instrumental in the development of various products like Gnosis Safe, Cow Protocol, and Zodiac—a standard toolkit for crafting decentralized applications (dApps) on Gnosis. The treasury of Gnosis DAO currently manages $813 million in AUM, consisting of an array of assets like GNO, ETH, and multiple stablecoins.
Beyond these leading five, the subsequent organizations in the top ten hold assets ranging from $200 million to $800 million. The contemporary DAO landscape is vibrant, boasting over 8 million governance token holders and 2.8 million active participants in voting and proposal formulation. In a compelling contrast, the aggregate value of the current top five DAOs is approximately 73.33 times greater than the 2016 DAO, which was valued at $150 million.
We invite you to share your insights and perspectives on the leading DAO treasuries of 2023 in the comments section below.
Frequently Asked Questions (FAQs) about DAO Treasuries 2023
What is the primary focus of the article?
The primary focus of the article is to provide an in-depth analysis of the top five decentralized autonomous organization (DAO) treasuries as of the year 2023. It examines their governance models, assets under management (AUM), and strategic operations.
Who are the top five DAOs in 2023 according to the article?
The top five DAOs in 2023, according to the article, are Arbitrum DAO, Optimism Collective, Mantle, Uniswap DAO, and Gnosis DAO.
What is the total value of assets held by DAOs as of 2023?
As of 2023, the total value of assets held by DAOs is $18 billion, with the top five DAO treasuries accounting for $11 billion of that amount.
How have DAOs evolved since 2022?
In 2022, the DAO ecosystem had a valuation of $10.8 billion. As of 2023, this figure has increased to $18 billion. Additionally, the composition of the top-ranking DAOs has changed, with new entities displacing previous leaders like Uxd Protocol, Mango DAO, and Lido’s DAO.
What is unique about the governance model of Optimism Collective?
The governance model of the Optimism Collective is distinct because it is shared between two entities: the Citizens’ House and the Token House.
What types of assets do these DAO treasuries typically hold?
These DAO treasuries typically hold a mix of their native tokens and various stablecoins. Some also hold fiat-pegged tokens.
How many entities are actively participating in DAOs as of 2023?
As of 2023, more than 8 million governance token holders and 2.8 million entities are actively participating in voting and proposal creation within DAOs.
How do current DAOs compare in size to the first DAO created in 2016?
The first DAO created in 2016 was valued at $150 million. In comparison, the current top five DAOs collectively hold assets about 73.33 times greater, underscoring the substantial growth and evolution in this sector.
More about DAO Treasuries 2023
- Decentralized Autonomous Organizations: An Overview
- Understanding DAO Governance Models
- DAOs: The Current Landscape
- Layer 2 Scaling Solutions for Ethereum
- Ethereum and DAOs: A Comprehensive Guide
- Asset Management in DAOs
- Evolution of DAOs: From 2016 to 2023
- Crypto Governance: The Role of Token Holders
- DAO Valuation and Market Trends
7 comments
Great article! Always wondered how these DAO treasuries work. A bit complex but thanks for breaking it down.
So much growth in just a year. 2022-2023 seems to be the DAOs time to shine. Wonder what comes next.
I’m kinda surprised Uniswap isn’t at the top. Thought they were the big players in this game.
Wow, didnt know DAOs had come this far. $18 billion is no joke, thats serious money.
Article is really in-depth. But can someone explain this Citizens’ House and Token House in Optimism? Sounds unique but what does it mean?
8 million governance token holders? that’s a huge number. DAOs are clearly more mainstream than I thought.
Mantle rebranding from Bitdao following a governance vote is pretty interesting. Shows how dynamic these organizations are.