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

PANews 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 regulatory pressure from the SEC under Gensler's leadership had 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 "optional," 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.