Prediction markets and DAOs share similarities in coordinating human and financial capital, according to Syndicate co-founder Ian Lee. Lee believes prediction markets that coordinate capital and human intelligence can be considered a form of DAO. Despite resistance, he sees the comparison as highlighting the potential stifling of innovation by crypto-native labels.

Syndicate has shifted focus from providing DAO infrastructure to enabling communities to launch their own blockchains through appchains. While on-chain business structures were prevalent during the pandemic, DAOs underpin popular DeFi projects like Uniswap and Arbitrum’s Ethereum layer-2 scaling network. However, there is a perceived lack of visible momentum compared to prediction markets.

Kalshi surpassed $1 billion in monthly volume, with Polymarket seeing 226,000 active traders generating $1 billion in trading volume. These platforms allow users to bet on various future events, suggesting that the next phase of DeFi may be determined by the odds of upcoming news rather than governance forums.

Read more at Yahoo Finance: Prediction Markets and DAOs Are Cousins, Says Syndicate Co-Founder