According to CoinMeta, Spark Protocol CEO Sam Macpherson indicates that traditional “flat” DAO structures are prone to voting congestion, voter fatigue, and factional infighting. A more effective governance approach involves core DAO setting rules, followed by delegating operational authority to competing sub-DAO. As a sub-ecosystem of Sky, Spark has been independently responsible for lending, risk management, and fund deployment since its launch in 2023. The scale of its deployed funds reached 3.6 billion US dollars in 2025 and is expected to exceed 5 billion US dollars in 2026.