To download the DAO platform, Scraps planned ICO
Decentralized autonomous organization (DAO) management platform Tally has closed after five years of operations, citing the lack of sustainable business models for management tools in the crypto market.
Dennis Bertram, Tilly's founder and CEO, said the company will begin the decline at the end of March. He added that the company is not moving forward with its planned Initial Coin Offering (ICO) and cannot confidently deliver on the promise of selling tokens to investors.
Tolly's closure comes despite years of activity on the platform, which supports administration for hundreds of organizations and has processed more than $1 billion in payments, Bertram said. At its peak, the company was valued at $80 billion and served more than 1 million users, he said.
Tally was launched in 2021 as a software platform for on-chain organizations. According to startup intelligence platform Tracxn, the company has raised a total of $15.5 million in three funding rounds.
Related: Vitalik Buterin proposes using AI to strengthen DAO governance
The shutdown reflects the challenges facing DAO-centric platforms after years of development and adoption. It highlights the speed of change in the industry, where even tangible achievements in DAO management tools may not be enough to support a venture-backed business.
Industry reflects on DAO challenges in closing Tally
Following the announcement, developers and operators across the ecosystem suggested a broader review of DAO governance, with some describing Tally's shutdown as part of a broader shift in how coordination tools are being developed and monetized.
According to Oku Trade CEO Getty Hill, the development of The DAO has not met the expectations set by the earlier stages of development.
Related: DAOs May Have to Leave Decentralization to Court Institutions
“Even if stablecoins achieve the greatest product-market fit in crypto, I still believe DAOs will eventually get there, although not for another 3-10 years,” he wrote.
Meanwhile, Oasis Onchain founder Stephen Deleveaux described the shutdown as “the end of an era,” reflecting the wave of DAO hardware projects emerging in the 2020–2021 cycle.
Adrian Brzezinski, Chief Technology Officer of Riles DAO, pointed to the statistics presented by Bertram and said that the “hard truth” in the crypto infrastructure is that usage is not proportional to revenue. “The next wave of governance doesn't look like voting portals. It looks like capital mobilization,” Brzezinski wrote.
DAOs are “difficult” to operate.
On March 11, Ave founder Stany Kulekov said that DAOs are “very difficult” to operate in their current form. They pointed to internal conflicts and ideas that took weeks of forum posts, temperature control, and multiple votes to pass.
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