Decentralized governance infrastructure Tally, CEO, and co-founder Bertram Dennison announced on the social media platform X that Tally is planning to introduce the Tally Protocol. This new protocol aims to maximize the value of the systems that token holders own and engage with.
This protocol aims to enhance the economic potential of governance tokens by introducing a liquidity layer for governance staking and restaking. Additionally, it seeks to optimize the distribution of voting power, thereby reinforcing the economic security of blockchain protocols.
The protocol operates by establishing a smart contract layer, enabling DAO token holders to mint Tally Liquid Staked Tokens (tLSTs). This facilitates earning incentives while preserving voting power and providing extra yield opportunities. Additionally, it supports governance staking by allowing users to stake their governance tokens with Tally and receive a tLST in return, which can then be utilized in restaking systems. The voting power linked to the governance token remains effective.
Additionally, it enhances DAO security by reactivating dormant voting power held in DeFi smart contracts and centralized exchanges. This is achieved by returning undelegated voting power to the DAO for redistribution. Undelegated tokens staked in the Tally Protocol are similarly returned to the DAO for redistribution. This process enables DAOs to retain control over their security, simultaneously improving token utility.
Today, we're announcing the next step forward in onchain governance: The Tally Protocol.
The Tally Protocol fully actualizes the value of the systems that token holders own and participate in.
The Tally Protocol unlocks the economic potential of governance tokens by providing a… pic.twitter.com/xtAqIH6y7m
— Dennison is on farcaster (@DennisonBertram) June 20, 2024
The Tally Protocol promotes effective governance by eliminating the need for token holders to choose between governance and financial utility. It requires token holders to delegate their tokens to an active participant to earn staking rewards, ensuring that voting power remains with engaged DAO voters. This enhances security against malicious attacks and prevents passive governance. Additionally, the protocol provides a transparent method for rewarding active delegates. The modularity of the protocol enables DAOs to experiment with new mechanisms for compensation.
To roll out this protocol, Tally collaborated with ScopeLift, a governance smart contract development team. ScopeLift developed the Unistaker and Flexible Voting, foundations upon which the Tally Protocol is developed.
What Is Tally?
Tally offers tools and infrastructure for establishing and managing on-chain DAOs on Ethereum and other Ethereum Virtual Machine (EVM) networks. Protocols such as Arbitrum, Optimism, ENS, Uniswap, AAVE, and many others utilize Tally to share control over their critical smart contracts. On Tally, individuals have the option to delegate voting power, make and approve proposals for DAO funds, manage protocols, and upgrade smart contracts, all performed on-chain.
Currently, DAOs on Tally manage over $30 billion, and more than $661 million has been transferred on the platform since its launch.
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