Tally raises $8M to scale on-chain governance for DAOs, aiming to address low voter participation with staking mechanisms.
Tally Raises $8M to Scale On-Chain Governance for DAOs
Tally has secured $8 million in Series A funding to expand its governance technology for decentralized autonomous organizations (DAOs). The company aims to address low voter participation in DAOs by introducing staking mechanisms that reward active governance participants.
Improving Governance through Technology
The Tally Protocol powers infrastructure to help leading protocols conduct effective on-chain governance of their DAOs. This includes Arbitrum, Uniswap DAO, ZKsync, Wormhole, Eigenlayer, Obol, and Hyperlane. With its complete stack of software, Tally can take users from idea to launching a token, distributing membership or ownership, and value accrual for protocols.
A New Era in Governance
The platform began as a DAO governance tool and has evolved into the most widely adopted software stack for on-chain organizations across Ethereum and Solana blockchains. CEO Dennison Bertram argues that on-chain organizations could dramatically reduce complexity and cost by moving processes entirely into software rather than traditional jurisdictions.
Tackling Low Voter Participation
One issue Tally aims to tackle with funding is low voter participation and apathy in DAO governance, which has led to sometimes controversial outcomes. To address this, the company has developed staking mechanisms that reward active governance participants economically. Users can stake their governance tokens to receive Tally Liquid Staked Tokens (tLSTs), earning passive, auto-compounding yields while retaining voting rights within DAOs.
Institutional Participation on the Rise
Recent regulatory clarity in the U.S. is expected to increase institutional participation in DAOs. CEO Bertram believes that this will lead to a more active and engaged community, with large organizations participating in governance. Tally sees its role as pivotal in advancing decentralized governance and unlocking greater economic value for token holders.
Scaling Up
The $8 million funding round was led by Appworks and Blockchain Capital with participation from BitGo amongst others. This follows previous funding rounds of $7.5 million in 2021. With this additional funding, Tally plans to scale its governance technology to more crypto-native DAOs.
