The term Decentralized Autonomous Organization (DAO) came into life In April 2016. Since then, it took over the crypto market by storm. It all started when a team of developers aim to remove human error and manipulation of investors’ funds. They decided to put the decision-making power in the hands of automated systems and a crowdsourced operation.
What is DAO
DAO is a decentralized autonomous organization. It is an organization created by rules encoded as a computer program. It is often transparent and controlled by the organization’s members, without any influence from a central government. In other words, their members and communities control it without any centralized governance.
DAO, an Interesting Feature of Secured Investing
With the increase in sudden cryptocurrency crash and economic disaster that comes from the crypto rug pull affecting both strong crypto projects, highly trusted cryptocurrency trading exchanges, etc.
DAO came into play as a way for web3, crypto, or NFT projects. Now, platforms can organize themselves without the need for a company or individual to be in power, resulting in a completely decentralized organization.
Since the launch of this new Ideology, a lot of crypto projects like Uniswap, Apecoin, Mkr, Sushi Swap, and Illuvium, amongst others have emerged to solve their own unique problems.
For example, projects like Uniswap made a massive name for themselves in the cryptocurrency ecosystem. They are the crypto trading site for new ETH Blockchain projects and non-listed projects on some major exchanges.
And that leads us to the topic of our discussion
Are DAO Projects Underrated?
Yes, DAO projects are highly underrated. Additionally, the level of adoption as regards the DAO innovation still shows that most people still don’t rate Dao as a model that could even attract many Investors to their project.
DAO projects make up just a fraction of 2.5% of crypto projects out of 100%. According to research, this vividly shows that most top-level crypto developers and founders have not fully accepted this concept yet.
According to billionaire investor Mark Cuban, “the future of organizations could be very different as DAOs take on legacy businesses”
Cuban opined that DAOs “won’t fit in for all kinds of the venture”. However, in his opinion, “there are so many characteristics and processes in any given company that can be more efficient and productive using a decentralized, trustless approach.”
Different Categories of DAOs That Companies Can Adopt
- Operating Systems– Single platforms that allow organizations to invent their own DAOs. Key projects include Orca and Colony.
- Protocol DAOs– Similar DAOs are decentralized autonomous organizations that use coins as a voting mechanism to implement the protocol and financial changes. Key projects include Uniswap, Mkr, Synthetic, Sushi, and more
- Investment DAOs– Supports capital generation for various DeFi projects and investments. Key project LAO
- Grants DAOs– It is like decentralized Venture Capitalists with communities. The community uses governance Crypto tokens to vote on capital sharing. Key project Audius Grants
- Collector DAOs– Mainly for NFT arts and artists to support fractional or full ownership of art and content. Key projects include Flamingo.
- Service DAOs– Talent hunt and acquisition method for agencies and individuals. Serving other DAO projects etc. Key projects include MetaverseDAO
- Social DAOs– Decentralised social media platforms for interactions like social networking. Major projects include Seed Club
- Media DAOs-Just like a decentralized media aggregator, it is transparent and works in the consumers’ common interest.
Conclusion
There are predictions that by 2025, at least 70% of crypto projects will adopt the decentralized anonymous organization’s innovation in other to create more trust for their investors.
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