The idea behind DAOs has been around for a while. However, it was only recently that it actually became practical, thanks to Ethereum.A DAO is created by a group of wallets controlled by individuals. All the functions of the DAO are then regulated by the DAO members. Becoming a member is the easiest part compared to a traditional organization with most DAOs using tokens. A DAO’s main target is to manage assets, build protocols, vote on community matters etc.
While DAOs started small they have evolved to a force to be reckoned with.
Why Are DAO’s A Revolution?We transition to an era of decentralised brands and entities where provenance plays a big role. What is a Decentralised brand? In our opinion a Decentralised brand is a new type of brand that doesn’t control their output. The community and the owners of the NFTs create around them. Provenance is here to stay...Daos are a revolution because in spirit they contrast heavily against the traditional business culture. They are formed based on aligned ideas and incentives as opposed to just profit seeking. A DAO can be formed for example to solve an awkward problem or create some protocol or tool that will benefit the whole ecosystem, or can be formed to create and manage assets. There are so many reasons a DAO can be created. The notion can be boiled down to a trustless organisation governed by voting and smart contracts while steered by aligned vision.So in this new era if the decentralised brands are the ‘’entrepreneurs’’ , DAOs are the ‘’VC Firms’’Since DAOs don’t have hierarchical structures, the funding occurs at creation and is distributed fairly. Then if needed more members can come in, in rounds, sounds familiar ?
However the way they move markets and create markets is definitely a new paradigm in finance and eons ahead from traditional VC firms.It’s still early for DAOs as they are in their infancy but it's obvious that they are here to disrupt!
Investors can also choose to join DAOs in order to have exposure to certain assets, as more and more special assets are being stored in those vaults. Gradually there will be a very small amount of said assets available and the only way one could get exposure could be by joining a DAO. We are still early and barely even scratch the surface of what's possible. New amazing concepts will emerge that disrupt even further and also challenge us in our minds.
Let’s Showcase Some Great NFT DAO’s
The DAO collaborates with creators to build experiments at the intersection of art, economics and social coordination. Fingerprints have the 3rd largest collection of Autoglyphs, the largest collection of DEAFBEEFs, one of the largest collectors of Mutant Garden Seeders and other significant pieces.
“NFT’s evolve and ascribe value in the hands of artists, game makers, metaverse creators or dwellers, and Defi at large. Flamingo aims to support, purchase, archive, collect and potentially tokenize important pieces of this ecosystem”.
Lets Compare The FunCtionality Of A DAO And Venture Capital