Ethereum’s dominance as the blockchain of choice for DAOs remains strong, but there is a case being made for other chains which may be better suited.
The crypto community and industry have chosen Ethereum as the chain of choice for most blockchain-based decentralized applications, but other chains may be better suited to handle the workload for decentralized autonomous organizations (DAOs).
Technical advantages and cheaper transactions have yet to become a major pull factor from Ethereum Virtual Machine (EVM) chains. EVM compatibility enables a network to use Ethereum’s security features.
Ethereum (ETH) and its compatible chains have a clear advantage in the number of DAOs compared to any other. They house more than 4,200 DAOs and protocols requiring governance participants according to data from blockchain voting platform Snapshot.
Comparatively, the Solana (SOL) ecosystem has only 140, Cardano has 10 DAOs according to ecosystem tracker Cardano Cube, and Polkadot (DOT) Substrate says it has just eight. This is not to discount the fact that among the top 10 DAOs by the number of decisions made over the past seven days, DAO tracker DeepDAO shows that three are based on Solana.
Ethereum’s leg up over the rest may be due to simple, yet practical reasons, according to DAO tracker DeepDAO CEO Eyal Eithcowich in emailed responses to Cointelegraph. He attributes Ethereum’s dominance to the fact that it is “the chain where the DAO movement started.”
More importantly, (Ethereum’s) the most mature ecosystem in terms of tools for starting and managing all facets of DAOs, mostly financial but not only. This may change as other chains grow in popularity.
On the other hand, he pointed to high gas fees as a shortcoming of Ethereum. He added that Solana allows DAOs to make fast and cheap transactions, “But, again, the supporting features and tools in the ecosystem are less robust.”
Additionally, Solana has become vulnerable to infrequent network outages.
The co-founder of the nonfungible token (NFT) game on the EOSIO-based WAX network Alien Worlds, Saro McKenna, told Cointelegraph last week that she believes EOSIO (EOS) is better for building DAOs.
In her view, Ethereum is too expensive for voting purposes and was designed to be a “general-purpose blockchain” to handle any number of different tasks. This contrasts with EOSIO, which McKenna said “was partly built for the purpose of DAOs.”
The EOSIO codebase is extremely powerful, allowing for layered multisig permissions and dynamic collection election mechanisms that are critical for DAOs to function properly.
Gas fees have long been an issue for Ethereum users, but in March, fees were at their lowest levels since last August.
However, CEO of blockchain consulting firm Koinos, Andrew Levine, had pointed criticisms of EOSIO which could explain why it falls short of Ethereum’s rate of adoption. In February, he wrote that while EOS transactions are virtually fee-less, there is an account creation fee. Furthermore, holding coins on an account is fairly complicated compared to Ethereum:
The EOS database is built on something called “memory-mapped files,” another vestige of the Steem design, an important consequence of which is that it is designed to use the most expensive form of storage possible: random-access memory (RAM).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks

Bitcoin to extend its consolidation between the $75,000 to $88,000 range
Bitcoin price faces a slight rejection around the $85,000 resistance level on Wednesday after recovering 3.16% the previous day. A K33 report highlights that Cryptocurrencies and Equities have largely de-risked going into Donald Trump’s “Liberation Day” on Wednesday.

Maker, Gala and Polygon lead $100k whale transactions, can altcoins defy looming macro uncertainty?
Maker (MKR), GALA, and Polygon (POL) are among the crypto projects that have seen a spike in whale transactions of at least $100,000 in the past week, as revealed by Santiment on-chain data.

Cardano and Binance Coin Price Forecast: Altcoins ADA and BNB show weakness in momentum indicators
Cardano (ADA) and Binance Coin (BNB) prices edge slightly down, trading around $0.66 and $598, respectively, at the time of writing on Wednesday after a mild recovery so far this week.

Public firms turn balance sheets into Bitcoin vaults: Gamestop raises $1.5 billion; Metaplanet adds 160 BTC
Public companies are increasingly converting their balance sheets into Bitcoin reserves. Gamestop (GME) has raised $1.5 billion in capital, with potential plans to allocate part of the funds toward expanding its Bitcoin treasury.

Bitcoin: BTC remains calm before a storm
Bitcoin's price has been consolidating between $85,000 and $88,000 this week. A K33 report explains how the markets are relatively calm and shaping up for volatility as traders absorb the tariff announcements. PlanB’s S2F model shows that Bitcoin looks extremely undervalued compared to Gold and the housing market.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.