How DAOs and NFTs work together?

How DAOs and NFTs work together? – Mail Bonus

ADVERTISEMENT

DAOs are decentralized organizations created to achieve a common mission through community governance instead of a central authority. They range from investor DAOs and protocols to philanthropic, service and DeFi DAOs.

As strong pillars of web3, NFTs are at the center of development in all kinds of DAOs, continuing to play an important role in enabling the vision of a decentralized world.

NFTs and collector DAOs

NFTs from well-known collections are often very expensive. Collector DAOs manage such exclusive NFT assets. To this end, they sometimes engage in art collection and monetization activities to support the blockchain art ecosystem, and sometimes they offer exciting investment opportunities.

Fingerprint DAO, for example, builds a collection of NFT art galleries and acts as an incubator for new art projects. DAO’s collection includes outstanding creative art NFT works, such as Larva Labs’ Autoglyphs and Protoglyph, Deafbeef’s Series 0-5, and Mathcastles’ Terraforms. Members decide how the DAO’s treasury should be spent to grow this pool. Membership requires 5,000 PRINT tokens, the DAO’s governing symbol.

Another well-known DAO integrated NFT art is Flamingo DAO which explores investment opportunities. By pooling valuable NFT assets, it enables shared ownership. Flamingo DAO’s portfolio includes 215 CryptoPunks and 22 Bored Apes NFTS and is now worth $1B. It is one of the most private DAOs though, open only to accredited US investors and new members buy in at 3,000 ETH.

DAOs, NFTs and real events

Some DAOs have a strong social component because, along with digital gatherings, they host real events.

For example, Friends with Benefits is a network of creators, builders and thinkers around the world. The DAO manages an NFT art gallery and through real events like the one held in Paris, it promotes collaboration around the NFT ecosystem.

ADVERTISEMENT

bright moment, NFT Art Gallery, focuses on actual NFT coin creation. The upcoming event, which will be held in Mexico City from November 14 – 21, will feature more than 3,000 creative works of art produced live, along with several creative art-making training sessions.

NFTs help finance the projects of DAOs

As a valuable asset class with multiple utilities, NFTs also serve as a means of crowdfunding.

Krause House is a DAO run by basketball enthusiasts whose mission is to own an NBA team. To be a member, it is necessary to own a Krause NFT ticket. These tickets come with the usual NFT utilities like access to Discord channels, require special community roles and eligibility for airports and lotteries. The DAO funds the steps in its roadmap through this NFT token sale. In the first funding round, for example1,000 ETH was collected.

Management of NFT market positions

Another area where we see DAOs and NFTs working together is NFT marketplaces.

These marketplaces usually issue their own governance tokens. For example, Rarible has a RARI that gives its holders voting rights and is assigned to support new web3 projects based on the Rarible protocol.

The SuperRare DAO has RARE as its token. Holders can create SuperRare Improvement Proposals (SIPs) that act as soft community consensus for public voting. RARE is also used to support SuperRare collections and collections.

Both RARE and RARI are ERC-20 tokens that are variable. Another NFT marketplace, Mintable, takes a slightly different approach. Instead of ERC-20 tokens, it uses NFTs for DAO voting. Every user who buys a vote gets a unique NFT. NFT owners can then vote on future updates, choose which artists and collections will be featured, and determine the platform’s fee policy.

Final worlds

These are just a few ways that DAOs and NFTs are working together to shape the future of web3. When we think about the infinite possibilities that can emerge from the combination of decentralized finance, different types of NFTs and new token formats, we will clearly see many more applications where DAOs and NFTs take advantage of the best parts of each other.

ADVERTISEMENT

Mail Bonus – #DAOs #NFTs #work

Leave a Comment

Your email address will not be published.