DAO Sets New Transparency Benchmark with Financial Report
On October 15, the Syndicate Network Collective made history by releasing its quarterly financial report. This move aligns with U.S.public firm standards, marking a significant step for decentralized organizations (DAOs).
Prepared by Cowrie Administrator Services LLC, the report covers token holdings, cash reserves, and tax classifications. As of September 30, the DAO held $138.4 million in SYND tokens and $285,000 in cash. The accounting follows an accrual basis, valuing tokens at fair market value. Syndicate is classified as a U.S. C Corp for tax purposes.
Transparency is crucial for decentralization. Syndicate’s blog post emphasizes this, stating, “Transparency isn’t an afterthought—it’s the backbone of decentralization.” This transparency aims to enhance crypto’s reputation, which has ofen suffered due to off-chain opacity.
Wyoming’s Decentralized unincorporated Nonprofit Association (DUNA) framework enabled this move. DUNA grants DAOs legal recognition, allowing them to operate like conventional entities.Syndicate’s action sets a precedent for other DAOs, promoting transparency and investor confidence.
Public companies must publish financial reports, but DAOs are not legally required. This lack of transparency can mislead investors and shield organizations from scrutiny. Syndicate’s initiative bridges this gap.
Key points include:
- First DAO to publish financials under Wyoming’s DUNA framework
- Report covers token holdings, cash reserves, and tax classifications
- Enhances crypto’s reputation through transparency
For more details, visit the Syndicate website.
