Tally Shuts Down DAO Platform, Cites Sustainability Issues

 

Tally, a decentralized autonomous organization (DAO) governance platform built on Ethereum, is shutting down after five years of operation in the crypto industry.

 

The decision, according to co-founder and CEO Dennison Bertram, was driven by a lack of sustainability in the decentralized governance tooling industry. Despite its success as a DAO governance platform, Bertram said Tally had not yet realized its original vision.

 

“We have spent years championing the DAO vision. But at some point, you have to accept the world as it is, not as you hoped it would be. The reality is that we can no longer build a viable business around this,” he said.

 

Bertram also said Tally will not move forward with its ICO plans, adding that the team was not confident it could fulfill any promises it would make to token holders if it sold them tokens.

 

Prior to the announcement, Tally had built a notable presence in the crypto space, including:

• Serving over one million users, with tens of millions of tokenholder addresses participating in governance through its platform.
• Processing more than $1 billion in crypto payments and, at one point, helping secure over $80 billion through systems it supported.
• Supporting hundreds of organizations on its governance platform, including Uniswap DAO, Arbitrum, zkSync, Wormhole, and EigenLayer.

 

Reflecting on these successes, as well as Tally’s ability to avoid major security incidents and navigate regulatory uncertainty under the previous SEC chair, Tally CEO Dennison Bertram said he was “incredibly proud” of what the team had accomplished.

 

Although the team will wind down operations by the end of the month, it is working with major partners to ensure its enterprise clients continue to be served and will keep its interface live until the transition is complete.

 

 

The Crypto Community Reacted

The announcement of Tally’s shutdown was met with disappointment across the crypto community, with some describing it as the “end of an era” and others recounting their experiences using the platform during the early days of Arbitrum and Uniswap governance.

 

“I still remember writing governance proposals for Uniswap on Tally back in 2021. Those were fun times. It’s disappointing that DAOs didn’t meet expectations. While stablecoins have achieved the strongest product-market fit in crypto, I still believe DAOs will ultimately get there, though perhaps not for another three to 10 years,” said Getty Hill, CEO of DeFi trading platform Oku Trade.

 

“Human labor coordination is one of the hardest problems. DAOs will need to evolve, and their applications must improve. The 2020–2021 era of DAO governance was a lot of fun,” he added.