What To Expect For DAOs In 2024?

Evolving DAOs: Three Decisive Trends for 2024
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In the vibrant and challenging world of Decentralized Autonomous Organizations (DAOs), the year 2023 witnessed a series of significant events that have laid the foundation for possible key blockchain trends that will define the course of these entities in 2024.

What DAOs will look like in 2024

Separation of powers

One of the predominant trends focuses on the “Separation of powers.”

Many DAOs have recognized the need to divide governance power to improve efficiency and establish more balanced systems.

Exemplifying this evolution, Optimism implemented a bicameral system: the Token House, governed by Optimism’s OP token, allows members to vote on protocol upgrades, while the identity-based Citizen House funds the retroactive public goods program.

This strategy has been praised as an approach to mitigate concerns associated with token-only governance schemes.

“angry exits” in Daos

Some DAOs have allowed disgruntled members to leave the organization, often with a proportionate share of the treasury, as a form of protection for minorities.

However, this measure has not been without challenges.

For example, Nouns DAO faced significant losses to its treasury due to angry exits, triggering internal divisions and tensions.

What To Expect For DAOs In 2024?

Treasury Disputes

With the possible arrival of a bull market, DAO treasuries are experiencing an increase in the value of their native tokens, generating competition over the allocation of funds.

In the Optimism ecosystem, complaints arose around the financing of projects backed by venture capital, while in Arbitrum, there were rejections of proposals for the allocation of tokens for governance management, evidencing discontent and discrepancies in the community.

These developments illustrate the challenges DAOs face in their quest to establish more effective and equitable governance structures.


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