Decentralized autonomous organisations (DAOs) are a mechanism that blockchain technology introduced with the intention of supporting the decentralised business environment. They are essential to decentralised finance. They might become more important as DAO infrastructure improves and previously ignored financial players pay attention to more demanding governance requirements. A DAO is a blockchain-powered organisation that relies on smart contracts for financial support. Despite the possibility of some human intervention, a DAO's primary goal is to have truly decentralised operations. DAOs are relatively new, yet they have the potential to have an impact on organisations across a wide range of industries and businesses, as well as the DeFi space.
The Kyber Network, an on-chain liquidity method that permits regular trading of cryptocurrency tokens, gave rise to KyberDAO. In July 2020, the KyberDAO was created, allowing holders of KNC tokens to participate in choices affecting how the Kyber Network functions.
The Kyber group listed a few benefits of joining the KyberDAO, such as increasing support by rewarding KNC holders with ETH tokens, providing transparency in governance, and focusing stakeholders on long-term goals of Kyber's expansion and progress. The market capitalization of the Kyber Network exceeds 227 million dollars.
Aragon is a decentralised autonomous organisation that serves as a structured building block for further DAOs to be introduced. It intends to make it possible for users to connect with anyone, from anywhere, using a DAO system. It claims to have served as the foundation for 1,500 DAOs as of today. The combined assets of these DAOs are roughly 350 million USD.
Owners of ANT tokens have the ability to form or join Aragon-powered DAOs as well as express their support for and opposition to decisions that affect the Aragon process. The Aragon Fundraising project intends to make it possible for DAO members to successfully access fundraising for their group. Aragon has a market cap of more than 157 million dollars as of this writing.
GnosisDAO is Gnosis's newly reported decentralised autonomous organisation. It is an application that aids those who are creating DeFi space. GnosisDAO bases its management on projected markets. It provides its decentralised representatives with helpful ideas based on the situation and needs of the market. The DAO will be run using the SAFE token, and it will have control over more than 150,000 ETH and 8,000,000 GNO tokens.
In the DAO known as Rocket, participants can exchange non-fungible tokens (NFTs) for either dollar-fixed unit DAI or US cash. NFTs cannot be exchanged for other tokens, such as cryptocurrencies like Bitcoin and Ethereum. As a result, Rocket offers NFT holders a way to access liquidity without surrendering their NFT shares.
MetaFactory is an option for people who wish to try their hand at buying on a community-based platform. Customers can shop there for goods such as yam jams, Fannie packs, tees, and caps. However, it intends to be much more than a shopping website. Its goal is to use a decentralised platform to crowdfund fashion designers and retailers while allowing financial investors to profit from the sales.
They anticipate that MetaFactory and its offshoots will serve as a model for brand factories set up as DAOs.
Saint Fame is an online fashion store. It is designated as a test in the erratic world of fashion. The $FAME tokens were purchased by stakeholders in the Saint Fame decentralised autonomous organisation network, who then hired a fashion designer to create a shirt and approved the design before it was put up for sale. It becomes a collaborative, decentralised fashion house in this way. Customers can exchange $FAME tokens for Saint Fame merchandise.
The mission of the decentralised Raid Guild is to assist its clients in building, testing, and perfecting their Web3 products. A few Web3 projects have been added to the repertoire of this non-proprietary decentralised network of website designers and developers, and they plan to add them to their catalog. The MetaCartel Network is used by Raid Guild to operate.
DAOs are anticipated to get better in the years to come. The number of functional DAOs increased by 660% between 2019 and September 2020, indicating astonishingly rapid growth in the DAO inventory.
The people who support new DAOs will become aware of a variety of things as they emerge, including: what consumers want, what the main barriers to adoption are, which use cases DAOs are best suited for, and many more.
In 2021, the likelihood of prolonged unhappiness with things continuing as usual could prompt a growing number of buyers across all industries to ask for more notable ownership for businesses they are interested in. This perspective is consistent with the purpose of DAOs and may encourage more people to create and invest in DAOs.