Why DAO Governance Became More Difficult: Crypto Strategy Changing After Trump

Once an indispensable infrastructure for the crypto ecosystem, Tally is closing its doors after six years. Serving over 500 decentralized autonomous organizations (DAOs) including Uniswap, Arbitrum, and ENS, the platform announced through CEO Dennison Bertram that it will cease operations. Tally’s end is not just the closure of a company — it’s a clear sign of how much more essential decentralized governance models become once the crypto sector escapes regulatory pressures.

Decentralization Was More Necessary Under Gensler, Now It’s Optional

During the Biden administration led by Gary Gensler, the SEC strictly applied the Howey Test to determine whether tokens are securities. Under a predictable regulatory environment, tokens could be classified as securities, exposing projects to legal risks. The industry’s inevitable response was to distribute decision-making power to thousands of token holders and make governance more decentralized.

Bertram notes that during this period, DAO governance tools were not just technical features but also legal protection strategies. As long as companies believed they could be penalized, decentralization was necessary. However, the more tolerant regulatory approach of the Trump administration changed this dynamic.

“The new administration signals loudly, ‘Don’t worry, do whatever you want,’” Bertram said. This expansion of operational freedom makes DAO structures more optional. Last year, the Across Protocol DAO announced it was converting to a C-corp; Solana-based exchange Jupiter and NFT platform Yuga Labs made similar decisions. Yuga CEO Greg Solano described decentralized governance as “heavy, noisy, and often unserious”—a reflection of how organizations under less legal pressure see decentralization as less mandatory.

Infinite Garden Thesis: Facing a More Realistic End

Tally’s business model was based on the assumption that the crypto ecosystem would expand infinitely. Thousands of Layer 2 solutions and hundreds of protocols would each need their own governance infrastructure. For this “infinite garden” thesis to hold, at least thousands of L2s would have to emerge as independent protocols.

That didn’t happen. Instead, the sector consolidated around a few dominant protocols. Bertram admits that most of his last funding round thesis envisioned thousands of L2s existing independently, but that this has not materialized in the near term. “Maybe it never will,” he adds. While crypto protocols have found product-market fit in payments and prediction markets, a rich ecosystem of consumer applications has never developed. The large consumer-facing layer that would justify the long-term existence of decentralized governance platforms simply never materialized.

“No venture-backed company in the decentralized protocols space has succeeded—at least not yet,” Bertram concluded. This highlights the deep gap between sector expectations and reality.

AI Is More Attractive: Crypto Loses Its Brightest Talents

Perhaps the most striking factor behind Tally’s closure is the macro-level shift in technology trends. Bertram states that AI has emerged as “the new narrative of the future,” and that this narrative is much larger and more inclusive than crypto.

As a result, the most talented and brightest developers are flocking to AI. With little exciting opportunity left in the crypto ecosystem, it struggles to attract top founders and developers. Bertram, who has been in the industry since 2011, says he no longer believes in the “early days” argument. Over fifteen years, this history provides concrete evidence of how consistent that claim is.

Market Data: Bitcoin Nears $70,000, Altcoins Accelerate

The news of Tally’s closure sent shockwaves through the sector, but the market continues to adjust to broader macro factors. Bitcoin gained strength after U.S. President Donald Trump announced a slowdown in tensions over Iran’s energy infrastructure, which could last five days.

Current market status (as of March 23, 2026):

• Bitcoin (BTC): trading around $70,430, up +3.27% in 24 hours
• Ether (ETH): +3.86% in 24 hours
• Solana (SOL): +5.14% in 24 hours
• Dogecoin (DOGE): +3.40% in 24 hours

Crypto mining stocks also rose in tandem with the broader stock market; S&P 500 and Nasdaq increased by about 1.2%, with mining sector stocks performing even better.

Analysts assess that Bitcoin’s next move depends on oil prices and whether shipments passing through the Strait of Hormuz stabilize. In a positive scenario, prices could test the $74,000–$76,000 range; if geopolitical tensions escalate, prices could retreat back to mid-$60,000s.

Is This a Decentralization Show, or Real Change?

Tally’s closure invites deeper reflection on the true power and limits of DAO governance. Bertram notes that there is a natural tension between building collaborative, decentralized systems and constructing them on top of the crypto economy. The crypto economy is designed for individuals to pursue personal interests—implying a zero-sum, profit-maximization mindset.

Without the regulatory pressures of Gensler’s era, decentralization becomes more of a matter of choice. Many organizations prefer traditional corporate structures over bearing the burden of decentralization. The low participation rates and slow decision-making in DAO governance make this choice more rational.

The crypto sector has found product-market fit more in speculation and trading than in creating broader consumer applications. This limits the need for decentralized governance tools. Bertram’s message as he closes his company is clear: without legal pressure and widespread use cases, decentralization may be technically possible but economically undesirable.

Tally’s closure signals that the crypto experience has entered a more mature phase—one where the anticipated decentralized architecture faces practical realities.