Why Early-Stage DeSci DAOs Should Avoid Funding Research

Introduction

This article was written by Dr. Che Stafford, Alpha Leader, Blockcircle and Research Scientist and Basel Ismail, CEO, Blockcircle

I am an academic postdoctoral scientist passionate about Web3 and DeSci. While I see immense potential in decentralised science, I do not subscribe to the notion that DeSci should replace academia. Some key opinion leaders (KOLs) in the DeSci space argue for a complete overhaul of the traditional scientific system, but this perspective is flawed. Academic science has its inefficiencies, yet it remains a functional and essential driver of innovation. Major medical and technological breakthroughs—such as CRISPR, mRNA vaccines, and AI-driven drug discovery—have all originated from academic research before transitioning into industry applications.

Rather than positioning DeSci as an adversary to academia, we should focus on integrating, partnering, and supporting academic science through to the biotech industry. Hostility toward academia is counterproductive. Scientists are not blind to these criticisms, and many will perceive such hostility as unprofessional, making them hesitant to engage with DeSci initiatives. If we truly want DeSci to make waves, it must work alongside academia rather than against it. We must harness the true networking power of DAOs–members of a DAO can better bring DeSci into academia through connections within their research institute, slowly bridging the gap and building trust through legitimate partnerships.

That said, academic science is highly siloed, often due to institutional structures, competition for funding, and geographic constraints. However, this does not mean scientists do not collaborate globally—it simply highlights an opportunity. The true spirit of DAOs, with their decentralised governance and open participation, could be a game-changer in breaking down these silos and connecting scientists worldwide in a more fluid, efficient, and collaborative way. This is where DeSci can add immense value, not by dismantling the existing system, but by enhancing its connectivity, efficiency, and inclusivity. BIO Protocol is rapidly expanding and being adopted globally, as you can see with it’s fast-pace listings on prominent centralized cryptocurrency exchanges (CEX)

NucleuseDAO is launching imminently, with the potential to become a transformative force in decentralised science. To maximise its impact, the DAO must avoid common pitfalls, such as prematurely funding research, and instead focus on novel, sustainable ideas that align with its decentralised ethos. While many DeSci DAOs begin with research funding, this approach is high-risk, offering minimal chances of ROI and threatening the DAO’s long-term viability. Let’s explore a more strategic direction for NucleuseDAO.

The Reality of Funding Research

1. Low ROI Probability: Academic research has an inherently low rate of commercialisation. Studies suggest that only 0.1-0.2% of academic research leads to patents that generate meaningful revenue. Even when IP is developed, the timeline to ROI is daunting.
2. Lengthy Timelines: The typical timeline for academic research to produce a spin-out company ranges from 5 to 10 years. For a drug to progress from discovery to market, the average duration is 10-15 years, with costs exceeding $2.6 billion USD, as shown below.
3. High Risk: Early-stage research has a significant chance of failure due to scientific uncertainty, lack of funding, or an inability to cross the “valley of death” between research and commercialisation. Investing in such projects early could drain resources without achieving tangible outcomes.

Instead of taking on extractive approaches in its infancy, the DAO should leverage its unique strengths to build connections, grow its community, and retain talented individuals from diverse fields. Here are a few practical, impactful ideas the DAO could focus on to address gaps in academia and science:

1. Transforming Conferences with Decentralised Innovation

Scientific conferences are essential for knowledge exchange, but they are often organised by lab heads who lack event management expertise. This can lead to significant challenges:

• Cost Restriction: Many conferences are prohibitively expensive to host or attend.
• Time-Consuming: Lab heads spend precious research time organising events rather than focusing on science.
• Limited Reach: Conferences often fail to engage broader audiences, including interdisciplinary researchers, policy-makers, and industry leaders.

What the DAO Could Do:

• Professional Event Management: Offer conference organisation services that leverage the DAO’s global, decentralised expertise, including marketers, finance professionals, and designers.
• Expand Reach: Use the DAO’s decentralised network to attract diverse audiences and foster interdisciplinary collaboration. A global approach also opens up more sponsorship opportunities, as the DAO can connect with companies and organisations beyond a single region, avoiding reliance solely on lab heads reaching out to local contacts. Additionally, linking the conference to Web3 creates opportunities to access funding that traditional science fields might not tap into. Many larger Web3 DAOs are now offering funding opportunities for impactful initiatives.
• Cost-Efficiency: Pool resources to reduce the cost for organisers, allowing for more equitable participation.

By applying decentralised governance and innovative coordination tools, the DAO can democratise conference organisation, making it more efficient and inclusive. This approach builds the DAO’s reputation as a practical problem solver in science.

2. Eliminating Grant Inefficiencies with Global Collaboration

Academics spend a disproportionate amount of time writing grants, with each new proposal taking an average of 38 working days and resubmissions taking 28 days. Reducing this inefficiency could save significant resources and allow researchers to focus on impactful work.

What the DAO Could Do:

• Centralised Support: Provide grant-writing workshops, templates, and peer-review services to help researchers craft competitive proposals.
• Decentralised Collaboration: Facilitate international collaborations by connecting researchers from under-resourced institutions with global networks to apply for joint funding.
• Capacity Building: Host virtual workshops or webinars to train researchers on effective grant writing, particularly in regions where such resources are scarce.

Imagine researchers from underserved regions collaborating seamlessly through the DAO’s platform, breaking funding barriers previously dictated by geography and institutional prestige. By reducing the grant-writing burden, the DAO not only supports scientific productivity but also builds goodwill and trust within the academic community.

3. Revolutionising Mentorship with Decentralised Networks

Most lab heads become leaders without formal training in management or mentorship, which can hinder their ability to support students and postdocs effectively. Moreover, junior scientists often lack access to high-quality mentorship outside their immediate academic bubble. While many fantastic mentorship programs exist, they are often siloed within individual institutions or universities.

What the DAO Could Do:

• Global Mentorship Matching: Create a platform that connects mentors and mentees across the globe based on shared research interests or career goals, linking existing mentorship programs together into a broader, decentralised network.
• Leadership Training: Offer programs tailored to train lab heads in leadership, project management, and conflict resolution.
• Community Building: Foster interdisciplinary mentorship that brings fresh perspectives to research challenges. Studies show that diverse mentorship improves career outcomes and innovation.

By connecting existing mentorship programs and leveraging decentralised governance, the DAO can ensure that guidance is accessible, scalable, and tailored to diverse needs. This decentralised mentoring network can unify fragmented efforts and transform the way scientists support one another.

4. Leveraging DAO Members as Institutional Gateways

One often-overlooked strength of the DAO is its access to academic institutions through its members, including PhD students, postdocs, and lab heads. These individuals are already embedded in research environments and can serve as invaluable connectors.

What the DAO Could Do:

• Institutional Outreach: Use members to establish partnerships with universities and research centres, leveraging their insider knowledge to identify opportunities for collaboration.
• Industry Connections: Leverage the DAO network to connect with scientific support companies, CROs, and instrument or consumable suppliers. By providing these companies with insights into institutional needs through DAO members, the DAO can offer direct contact opportunities and help companies better tailor their offerings to academic and start-up communities. This could open lucrative sponsorship and partnership opportunities for the DAO while fostering innovation.

By using its network of members strategically, the DAO can establish itself as a trusted bridge between institutions, researchers, the industry, and the decentralised world.

5. Driving Philanthropic Impact Through Global Outreach

Institutes spend vast amounts of money attracting philanthropic donations, but countries with small populations or unfavourable cultural attitudes face significant limitations. The DAO could play a transformative role in this space by leveraging its global reach and decentralised network.

What the DAO Could Do:

• Global Fundraising Platform: Create a platform that connects philanthropists with researchers, focusing on underfunded areas like rare diseases. The DAO’s global nature enables it to tap into diverse funding pools and reach donors who may not typically engage with traditional academic institutions.
• Fee-for-Service or Free Model: Offer this as a fee-for-service initiative to sustain the DAO or as a free program to build goodwill and attract attention to the DAO’s broader mission.
• Promote Awareness: Use the DAO’s network to highlight impactful research projects and encourage donations, showcasing how decentralised science can address global challenges effectively.

By focusing on driving philanthropic donations globally, the DAO can support research initiatives that might otherwise struggle for funding, while also enhancing its reputation and visibility within the scientific and philanthropic communities.

Building for the Long-Term

Here’s the overall picture. Suppose you take the fifty top patent-producing schools over the last fifty years as your cohort. In that case, those are responsible for about 70% of all university patents with a long-tail distribution thereafter. The formation of new life science companies is, if anything, even more top-loaded. Only 47 of those 50 schools produced such new firms during the 1980-2013 period.

The top five universities produced one-third of the new companies, and the top ten produced half, while the bottom seven school produced 3% of them.

What fates did all these companies meet? 13% of them were eventually acquired by another company, and 10% of them had an IPO, so those are the successes. Below, you can see the enhanced success base rates; notice how low they are.

There’s an ambiguous category after that of companies that have at least one entry in the Dun & Bradstreet Data Universal Numbering System, which is probably the most comprehensive registry of firms that appear to be (or have been) going concerns. 30% of the companies fit that, but with no apparent acquisition or IPO. Meanwhile, 18% of them show up in DUNS but appear to have only one or two employees, 22% show up but have either definitely failed or cannot be proven to still exist, and 7% never applied for a DUNS registration at all.

Overall, then, a generous reading would be roughly 23% success, 47% likely or definite failure, and 30% “work in progress.”

In its early stages, the DAO should focus on proving its value by addressing systemic inefficiencies in science. By building a reputation for practical solutions and fostering a strong, engaged community, the DAO can set the stage for more ambitious projects—such as funding research—in the future.

This approach ensures that the DAO’s growth is sustainable, avoids high-risk financial decisions, and creates a foundation of trust and utility within the scientific community.

By focusing on transforming conferences, eliminating grant inefficiencies, revolutionising mentorship, leveraging its members as institutional connectors, and driving philanthropic impact, the DAO can redefine how science is supported and conducted globally. Let’s build this vision together. What services do you think would best serve the scientific community? Join us and shape the future of decentralised science.