Syndicate becomes first DAO to publish compliant financial information

Quarterly financial reports are not new for companies, but they are new for DAOs and may set new standards for transparency.

For the first time in cryptocurrency history, a decentralized network will submit professional-grade financial reports, potentially setting a new standard for transparency. On October 15, Syndicate Network Collective released its third quarter report in line with U.S. public company standards.

This report, created by Cowrie Administrator Services LLC, shows everything from token holdings to deferred tax liabilities. This includes the syndicate treasury’s cash position, accounting methods, and tax classification.

So, as of September 30th, DAO held $138.4 million in SYND (SYND) tokens and $285,000 in cash. Regarding accounting treatment, it is based on accrual basis and mark-to-market accounting of token holdings. This organization is also classified as a US C Corp for tax purposes.

“Transparency is not an afterthought to decentralization, it is what gives it substance,” the syndicate wrote in a blog post. “For years, on-chain transparency has been one of the defining promises of cryptocurrencies,” it added, adding that this transparency often did not extend to off-chain, damaging cryptocurrencies’ reputations.

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Wyoming allows syndicated DAO movement

This is the first financial disclosure for decentralized unincorporated nonprofit associations since they were introduced into Wyoming law. In short, DUNA’s legal structure allows DAOs to operate in accordance with real-world legal recognition.

Yet, until recently, no company offered itself the same level of transparency that public companies are required by law. This is a problem because a lack of financial transparency can lead to investors making poor investment decisions and shield companies from scrutiny.

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