Prediction Markets and DAOs Are Cousins, Says Syndicate Co-Founder

Prediction markets and decentralized autonomous organizations, or DaosCan cousins ​​be closer than most people, according to the co-founder of Syndicate, Ian Lee.

There are strong similarities between the two, because both are fundamental about combining social behavior and money, despite what conditions suggest, he said Decrypt. (Revelation: Decrypt‘s parent company, Dastan, has called a prediction market Myriad.)

“In the summary, [DAOs are] About coordinating human capital and financial capital at the same time, “Lee explained.” So, prediction markets that coordinate both capital and human intelligence, I think of those as a DAO. “

Lee, whose company helped in making once prominent Daos-Acht Constitutiona and Nike’s .WooshRecognized that Dao Die-hards may not fully embrace his comparison. Yet he believes that it emphasizes how crypto-native labels can sometimes suppress innovation.

Lee prefers to think of prediction markets, not only as ‘gambling market things’, but as ‘social financial networks’ used to coordinate human intelligence in sometimes thousands of individuals to predict results.

Syndicate itself has developed its focus to only offer DAO infrastructure to enable communities to launch their own block chains via so-called Appchains.

Nowadays, the business structures on the chain-where control are distributed instead of hierarchical, seen as a memory from the Pandemic era. At the time, Daos were everywhere: Snoop Dogg joined a music -oriented DAO, Peter Thiel supported investment collectives and Constitutiondao tried famous and failed to buy a copy of the American Constitution at an auction.

Daos still supports the most popular Defi projects, such as decentralized exchange Uniiswapand infrastructure such as ArbitrumS Ethereum Layer-2 scale network. But compared to prediction markets, one could claim that there is a lack of visible momentum.

Kalshi recently recently surpassed $ 1 billion in monthly volume, despite threatening legal threats. In the meantime, Polymarket saw 226,000 active traders last month and generated $ 1 billion in trade volume, according to one Dune Dashboard.

With these platforms, users can bet on a huge range of future events, from the outcome of political elections to the question of whether Taylor Swift will announce a pregnancy. In that sense, the next chapter for Defi may not be written in governance forums, but in the opportunities of tomorrow’s news.