During Decrypt’s 2021 Ethereal Virtual Summit, Aaron Wright, co-founder of OpenLaw, ensured that Decentralized Autonomous Organizations (DAOs) manage funds valued above $ 1 billion. Was this growth thanks to DeFi?
The DAO is a sector in full growth
For those of you who don’t know, a DAO is an organization represented by coded rules like a computer program that is transparent. It is also controlled by the members of the organization and not influenced by a central government.
In this sense, in this type of organization there is no figure of a CEO or a CFO. Instead, everything is in sight and the rules around spending are incorporated into the DAO through code.
Therefore, the interesting thing about DAOs is that trust does not need to enter the equation since it is backed by 100% transparent and verifiable code. This undoubtedly opens up opportunities for global collaboration and coordination.
The growth of decentralized DeFi finance, as well as the rise of NFTs, has generated a significant increase in interest in these types of organizations.
With the above in mind, we can understand why Aaron Wright spoke so enthusiastically about DAOs, highlighting their recent growth.
Silicon Valley in the Cloud
During the Decrypt Summit, Aaron Wright argued that in 10 to 20 years we will see a “Silicon Valley in the cloud” powered by DAO.
«DAOs will likely be viewed as the organizing entity for the internet age“Said Wright. «I really believe this is the future».
Also, recently Tyler Swope, a widely recognized crypto analyst, commented in a YouTube video on his appreciation for DAOs.
In this way Swope argued that DAO altcoins are the next to occupy the stage since they will be the big news. Thus Swope argued that «DeFi and DAO go hand in hand. Therefore, in my opinion, TVL on DAOs is going to have its breakout this year. Because almost all DeFi protocols are moving towards the DAO model».
As some may know, TVL refers to “Total Value Locked”, which, according to Wright, is over $ 1 billion. A year ago the amount administered by DAOs was approximately USD 10 million.