DAO governance platform Tally will shut down operations, citing relaxed regulations that have weakened the demand for decentralization.

CoinFeed reported on March 17th, citing CoinDesk, that the DAO governance platform Tally has announced its closure after six years of operation. Tally provided governance infrastructure such as on-chain voting and delegation for over 500 DAOs, including Uniswap, Arbitrum, and ENS. CEO Dennison Bertram stated that SEC regulatory pressure under Gensler's leadership forced projects to decentralize through DAOs to reduce the risk of tokens being classified as securities. He added that the current US government's more lenient approach to crypto has shifted decentralization from a necessity to an option, weakening the demand for governance tools. He also acknowledged that the "Ethereum Infinite Garden" assumption has failed, with only a few leading protocols emerging in the industry. Furthermore, the rise of AI has drawn away top talent, making it difficult for governance tools to form a sustainable venture capital business model.