The decentralized autonomous organization (DAO) governance platform Tally has announced its closure after five years of operation, citing the lack of a sustainable business model for governance tools in the crypto market. Despite being active on the platform for many years, supporting the governance of hundreds of organizations and processing over $1 billion in payments, Tally was unable to turn the tide. According to Bertram, the company once helped secure up to $80 billion in value at its peak and served over 1 million users.
Tally's shutdown has sparked reflection within the industry regarding the challenges faced by DAOs.
Following the announcement, developers and operators within the ecosystem began reassessing the current state of DAO governance, with some viewing Tally's closure as a microcosm of the shift in developing coordination tools and business models.
“While stablecoins have achieved the best product-market fit in the crypto market, I still believe DAOs will eventually reach this goal, but it may take 3 to 10 years,” one commentator noted.
The operation of DAOs is considered to be “difficult.”