Welcome to your weekly dose of DAO news! In this newsletter, we'll cover the most important changes, proposals, and developments within the DAO ecosystem. Stay up-to-DAO with the latest trends and innovations as we delve into the dynamic world of decentralized governance.

DAO News 📰

💰 Polygon DAO Rejects $1.3B Stablecoin Deployment Proposal Amid Security Concerns

A proposal to deploy $1.3 billion in stablecoin reserves, including USDT, USDC, and DAI, to generate $70 million in annual yield through Morpho Labs’ vaults has been rejected by Polygon DAO. The plan aimed to reinvest earnings into the ecosystem but was met with community resistance due to security concerns and the absence of an opt-in mechanism for users. Despite initial enthusiasm, Polygon highlighted these issues and criticized Aave leadership’s reaction to the proposal, emphasizing the importance of community-driven governance in shaping future strategies.

Source: coindesk.com / coinspeaker.com

🎈 DAOBase Launches DAO POP to Simplify Community Tokenization

DAOBase has unveiled DAO POP, a revolutionary no-code platform that simplifies launching and scaling community tokens onchain. With features like instant token issuance, fair price discovery through bonding curves, seamless transitions to Uniswap, and robust governance tools, DAO POP empowers creators to build self-sustaining ecosystems. Revenue-sharing, referral rewards, and built-in marketing support further enable creators to grow their communities while earning tangible financial benefits.

🎈 Pop your DAO at DAOBase.ai

Source: DAOBase Medium Blog

🌏 India Blockchain Alliance Partners with RAK DAO

The India Blockchain Alliance (IBA) has partnered with Ras Al Khaimah Digital Assets Oasis (RAK DAO) to create a unified global blockchain ecosystem. This collaboration provides Indian blockchain companies streamlined access to the UAE market and fosters innovation, talent exchange, and regulatory alignment. IBA’s expertise will support UAE companies, while RAK DAO offers a robust legal framework and a thriving ecosystem of over 400 firms. With a shared emphasis on sustainability and transparency, the partnership aims to promote ESG-compliant blockchain practices and drive international policy transformation.

Source: crypto.news

🔗 Lista DAO Adopts Chainlink for Enhanced Market Data Security

Lista DAO, a prominent liquid staking and CDP protocol on BNB Chain, has upgraded to Chainlink Price Feeds, replacing Redstone for its $180M BNB-USD market. This integration ensures tamper-proof, aggregated data for robust market operations and enhances security for its lisUSD ecosystem. By adopting Chainlink, trusted by major institutions and securing $17T in transaction value, Lista DAO strengthens its resilience against data manipulation, network congestion, and volatile market events, solidifying its position in the DeFi landscape.

Source: crypto-news-flash.com

💔 Lido on Polygon to Sunset Operations Following DAO Vote

Lido on Polygon will be discontinued in the coming months after a governance vote by LDO token holders. Citing challenges like low user adoption, limited rewards, and shifting DeFi priorities toward zkEVM solutions, the DAO decided to sunset the protocol. Key dates include the cessation of staking on December 16, 2024, a temporary pause in January 2025, and the conclusion of frontend support on June 16, 2025. stMATIC holders are advised to unstake through the Lido UI by the June deadline, with withdrawals available via explorer tools thereafter.

Source: blog.lido.fi

📈 Grayscale Expands Trust Offerings with Optimism and Lido DAO

Grayscale Investments has launched new Trust products for Optimism (OP) and Lido DAO (LDO), targeting Ethereum’s L2 scalability and staking sectors. Available exclusively to accredited investors, the trusts provide direct exposure to the tokens. The trusts aim to boost Ethereum’s efficiency and adoption, reflecting Grayscale’s commitment to expanding its DeFi-focused offerings in response to growing market demand.

Source: coingape.com

✅ DeXe Community Approves Ethereum Deployment Proposal

The DeXe community has approved a proposal to deploy the DeXe Protocol on Ethereum, advancing its roadmap to expand adoption and scalability. This deployment will integrate DeXe smart contracts and DAO governance into Ethereum, leveraging its liquidity and infrastructure. The move also paves the way for collaboration with GraFun, extending DeXe’s reach.

Source: app.dexe.io

Weekly DAO Changes 📊

New DAOs State

Over the past week, a total of 80 new DAOs were created, reflecting a 0.05% addition ratio in the ecosystem. The majority were created through Aragon (145), Snapshot (19) and xDAO (45).

Top 3 Biggest Gainers and Losers

Curved Shampoo tops the gainers this week with an impressive $2,157,579.69 increase in treasury value, marking a staggering 196.00% growth driven by large fund inflows. OlympusDAO follows closely, adding $39,999,968.12 to its treasury, representing a 53.00% rise fueled by significant inflows. Bad Idea AI DAO rounds out the top three with a $1,242,234.90 increase, supported by a 32.6% jump in $BAD token value.

On the losing side, UPDAO recorded the steepest decline, with its treasury value dropping by $3,335,190.70, a 76.00% decrease caused by large outflows. APWine saw a $14,379,879.11 reduction, equating to a 68.00% drop due to significant fund withdrawals. Instadapp experienced the smallest decline among the top losers, with a $115,758,010.56 decrease, marking a 36.00% reduction attributed to large outflows.

Governance Activity

The past 7 days, a total of 1925 new members joined the DAO ecosystem, representing a minor 0.01% increase in total DAO voters. Additionally, 483 new proposals were submitted, marking a <0.01% increase in overall proposal activity.

Proposal Participation Highlights

DEFI DAOs

• MetisDAO: "Ecosystem Proposal: BePrometheus - sparkles A single spark can ignite a vast fire." - 1,517 voters.

• Gracy: "[GP-8] GRACY Staking Reward Pool Setup" - 1,178 voters.

• Equilibria Finance: "[Epoch #80] Weekly Pendle Gauge Vote" - 1,068 voters.

NFT DAOs

• Aavegotchi: "[AGIP 141] Rarity Farming Season 10" - 166 voters.

• CreepzDAO: "Proposal #20 DAO Structure Proposal: Create a Framework for Providing liquidity to holders" - 65 voters.

• CreepzDAO: "Proposal #21 [SELL/STAKE/BUY] – Create a flow from Airdrops into Gen Holdings." - 65 voters.

Noteworthy Active Proposals 💡

⚖️ ENS DAO Considers $240K Reimbursement to Support eth.limo Legal Costs

ENS DAO is considering a proposal to reimburse eth.limo $240,632.38 in USDC from the treasury to cover ongoing legal fees incurred while maintaining the eth.limo/eth.link gateway services. Eth.limo has faced substantial financial burdens due to compliance with US federal requests and unforeseen legal challenges as a public infrastructure provider. The funds aim to ensure the continuation of eth.limo’s critical role in the Ethereum ecosystem, supporting thousands of dApps and decentralized websites while preserving its public good status.

Voting ends on Dec 24, 2024.

Full Proposal: [EP 5.28] [Executable] Reimbursement of eth.limo’s ongoing legal fees

🧪 Gnosis DAO Reviewing $150K Grants for DeSci Projects on Gnosis Chain

Gnosis DAO is reviewing a proposal to allocate $150,000 to support early-stage DeSci projects deploying on Gnosis Chain. The initiative includes a three-month grants program managed by DeSciWorld, aiming to create foundational tools for decentralized science, such as funding mechanisms and collaborative research protocols. With $135,000 reserved for grantees and $15,000 for administration, the program seeks to onboard researchers, foster innovation, and position Gnosis as a hub for DeSci development. Milestones include funding multiple projects by March 31, 2025.

Voting ends on Dec 22, 2024.

Full Proposal: GIP-119: Should Gnosis fund DeSciWorld on Gnosis?

🍣 Sushi DAO Explores Treasury Diversification for Sustainable Growth

Sushi DAO has introduced a proposal to diversify its treasury holdings into stablecoins and blue-chip assets like WBTC and ETH/WETH. The strategy aims to boost Protocol Owned Liquidity (POL), supporting operational resilience, liquidity depth, and long-term ecosystem growth. Managed by Sushi Labs, the proposal execution plan includes flexible execution mechanisms, quarterly reporting, and alignment with the protocol’s fee generation and scaling objectives. If approved, the proposal will empower Sushi Labs to strategically allocate funds to deepen liquidity and expand the Sushi ecosystem.

Voting ends on Dec 23, 2024.

Full Proposal: Treasury Diversifications [Implementation]

💎 Decentraland DAO Voting on Stablecoin Diversification for Treasury Resilience

Decentraland DAO is voting a plan to convert 3.7 million MANA into stablecoins over two to three months, aiming to strengthen financial stability and mitigate market risks. The proposed strategy, which builds on the success of Phase A, ensures liquidity for grants and council initiatives while preparing for future BTC and ETH purchases in 2026. Incremental execution minimizes market impact, providing flexibility for the incoming council to adjust or pause the diversification as needed.

Voting ends on Jan 01, 2025.

Full Proposal: Decentraland DAO Treasury Diversification ( Phase B )

💡 BeethovenX DAO DAO Evaluates Governance Amendments for Sonic Transition

BeethovenX DAO is considering amendments to its operating agreement to facilitate the protocol’s migration from Fantom to Sonic Mainnet. The proposal seeks to redefine “Network” and “Smart Contract” to ensure governance for maBeets Reliquary NFT holders aligns with Sonic’s infrastructure. If approved, the changes will maintain weighted voting mechanisms and support seamless integration upon deployment, continuing the DAO’s transition plan established in prior governance measures like BIP-78.

Voting ends on Dec 20, 2024.

Full Proposal: BIP-83: Sonic Expansion – Amend the Beets Operating Agreement to Enable Governance on Sonic

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⚠️ Disclaimer: The information provided in this newsletter is for informational purposes only and should not be considered as financial advice. Readers are encouraged to conduct their own research before making any investment decisions.