Tally, a leader in management tools, has secured $ 8 million in Serie A Financing aimed at scaling his management technology to more crypto-native decentralized autonomous organizations (DAOS).

Tally is best known for the Tally Protocol, which drives infrastructure to help keep protocols of implementing effective on-chain management of their DAOs, including Arbitum, Uniswap Dao, Zksync, Wormhole, Eigenlayer, Obol and Hyperlane.

“We’ve built this complete stack of software to operate these on-chain organizations,” said Dennison Bertram, CEO and co-founder of Tally Protocol, in an interview with Coindesk. “We can take you from your idea to launch your token, to distribute your membership or ownership, all the way to the value information for your protocol.”

The platform began as a DAO control tool and has evolved into the most adopted software stacks for on-chain organizations across Ethereum and Solana Blockchains, it said in a release.

“On-chain government and capital formation could in theory dramatically reduce the complexity and cost of formation and operating organizations by moving these processes fully into software rather than traditional jurisdictions guided by platforms such as tally,” Bertram said.

One day, organizations on-chain can be seen as a way of competing with nation states, he argued, referring to the expensive and lawyer-intensive process of registering foundations and other legal entities typically used for crypto.

“Whoever embraces crypto can really fully embrace the future,” he said.

Fixing voting for better governance

One question that Tally aims to tackle with funding from series A is low voter participation and apathy in DAO Governance, which has led to sometimes controversial results.

Last year, for example, a group of compounddao token holders, called Golden Boys, successfully adopted a controversial proposal to create a dividend-bearing product called Goldcomp.

Although he was originally given traction, the proposal was facing significant controversy due to perceived irregularities, turnout with low choices and lack of widespread social engagement.

In the end, the golden boys agreed to cancel Goldcomp, which highlighted the broader question of government apathy in DAOs rather than any technical exploitation or malicious intent.

“Many of the people you should expect to vote ‘no’ about something like this did not show up,” Bertram said in a previous interview. “What it shows is that the democratic process of managing a DAO is imperfect and needs improvement.”

To tackle this, Tally has developed poor mechanisms designed to reward participants in active governance financially. Users can enter into their government tokens to receive Tally Liquid Stake-Tokens (TLSTS) and serve passive, auto-associated yields while retaining voting rights within DAOs.

“This fundraise is really about leaning into the original vision,” Bertram said. “Now that we have proven that this works, that you can have these big organizations, it’s time to really scale it up.”

Institutions get involved in DAOS

Bertram also emphasized that the recent legislative clarity and shifts in attitude towards cryptoduling in the United States have opened the door for increased institutional participation in DAOS.

“With this clarity we get much more participation, not necessarily from average Joe token holders, but actually from large organizations that depend on the infrastructure they are building on,” he said. “These organizations need and want the ability to actually control the infrastructure they operate on.”

Ultimately, Bertram Tally’s role sees an important in promoting decentralized control and locking greater economic value for token holders by directly rewarding active, informed participants.

“Given the new acceptance of crypto as an important driving force for future value in America, it’s time to scale it beyond crypto and make it a core primitive to create new organizations,” he said.

The round was led by AppWorks and Blockchain Capital with the participation of Bitgo among others.

Tally earlier raised $ 7.5 million in 2021 across two financing rounds.