DeSci Sector Surges to $609 Million with DAO Governance

DeSci, or decentralized science, is rapidly evolving from a niche experiment by Web3 enthusiasts into a burgeoning sector with a total value of public DeSci tokens currently around $609 million. This phenomenon is driven by a set of tools and practices that shift key elements of the scientific process—such as funding, data storage, and intellectual property circulation—to open blockchain networks managed through decentralized autonomous organizations (DAOs).

The primary goal of DeSci is to replace traditional closed journals and grant bureaucracy with a transparent, programmatically-governed economy. In this system, data and decisions are verifiable by everyone in the network, addressing several critical issues in the current scientific landscape. These issues include the low grant approval rate, where only about 7% of proposals get funded, and the increasing number of manuscripts without a corresponding improvement in the quality of validation. Additionally, DeSci aims to solve the problem of closed data, where patents and raw data are often stored in private files, making them inaccessible to the broader scientific community.

DeSci technology is structured into six typical layers, ranging from the basic blockchain to tokenized access to laboratories. This model helps navigate the industry and understand the level at which a project is operating. A typical DeSci project follows a five-phase life cycle: presentation, voting, tokenization of rights, workflow and validation, and commercialization. During the presentation phase, the research team posts a whitepaper and budget estimate in a dedicated DAO forum. Governance token holders then vote on whether to allocate a seed grant. If approved, an IP-NFT with legal metadata and an IP-Token is created and sold via a bonding curve, allowing sponsors to buy shares of future IP. Data is automatically uploaded to IPFS, and reviewers or labs receive payments for validated results. Successful projects lead to licensing or spin-out startups, with revenues shared among IP-Token holders, DAOs, and authors.

Currently, notable DeSci players include research DAOs like VitaDAO, which has raised $4.1 million with investors including Pfizer Ventures, and has 24 projects with over 10,000 participants. Other projects include LabDAO, which raised $3.6 million and released the PLEX cloud computing client, and ResearchHub, which pays $150 to the RSC for a full peer-review. Open-hardware communities like OpenFlexure offer basic microscope assembly for less than $100 when purchased in bulk. These projects incentivize verification of results and reduce the flow of unverifiable "noise" by rewarding meta-reviewers with a share of the tokens.

However, working with DeSci involves several risks. Speculative memcoins can divert capital away from research and are vulnerable to exploits. The "publish-get a token" mechanism can generate low-quality results with weak moderation. Until specific regulations are in place, IP-NFTs may be treated as securities, complicating commercialization. Additionally, additional IP-Token issuance can dilute early stakes if there are no constraints.

To become part of the DeSci movement, individuals can create a non-custodial wallet and buy a small amount of governance tokens to participate in voting. They can also publish a preprint or conduct a review on ResearchHub to get paid in RSC. Testing Catalyst β by exchanging USDC for an IP-Token allows participation in licensing decisions. For those with a patent, tokenizing it through Molecule while retaining the royalty override is another option.

DeSci has transitioned from an interesting startup genre to a working infrastructure with DAO treasuries, commercial offerings, and initial regulatory frameworks. The transparent "data ↔ token ↔ solution" scheme accelerates the transition of discovery from lab to patient, making it accessible for anyone willing to work openly and share the value of knowledge. This new scientific cycle promises to revolutionize the way research is conducted and commercialized, fostering a more collaborative and transparent scientific community.