DAO-enabled NFT Platform - PerfectionGeeks
What are DAOs?
When we talk about digital currencies, they are decentralized, which signifies they do not have any authoritative bodies to control the transactions. The flow of digital currencies is not governed by any organizations like the government and central bank. They are divided into different networks, computers, and nodes. Digital currencies utilize decentralization to assure privacy and security for people. This encouraged the designers to come up with the idea of making a decentralized network for a bunch of neighborhoods.
DAO or Decentralized Autonomous Organization is an organization for designers to automate the determinations and encourage Cryptocurrency transactions. The institution is developed to perform automated and decentralized. It is a form of experience funds that works on the open-source code that can work without any specific management system or committee of managers. In DAO, the communities will be involved in creating collaborative decisions to vote for the future of the organization. Several NFT tasks lie on the lines of DAO, where a mass of token holders is collected in a gathering to share their motivations.
Relying upon the layout of the project, technology, and modus operandi, companies can select to reinforce DAO from the following main classifications:
- Operating systems: Standalone platform enabling companies to make and show their DAOs
- Protocol DAOs: Operates voting mechanisms to enforce decisions about protocol modifications
- Investment DAOs: Supports pooling and investment procedures for various Defi (decentralized finance) projects
- Service DAOs: Handles talent hunting and acquisition processes for companies and people
- Collector DAOs: Developed to handle NFT platforms committed to delivering fractional and entire NFT ownership
- Social DAOs: Helps decentralized platforms for social networking and engagement
- Media DAOs: Decentralized news aggregator performing in customers' interest
Companies should also survey creations on the DAO’s horizon to determine which DAO model is more suitable for automating their organization.
Types of DAOs
It’s essential to comprehend that DAO is a general term that encompasses a large number of different kinds of groups and companies. Two collectives can be considerably different, but still, both are DAOs.
Here are a few samples of well-known DAOs:
- The PleasrDAO collects different NFTs and invests in other assets.
- The HerStory DAO manages and funds assignments by Black women and non-binary artists.
- The Komorebi Collective DAO funds women and non-binary crypto inventors.
- The Friends with Benefits DAO is a premier social club that you pay to enter.
- The MetaCartel Venture DAO is a for-profit company that supports early-stage decentralized applications.
Is DAO bringing evolution to the NFT market?
DAOs are considered revolutionary not only in the NFT marketplace but in the entire blockchain industry. Consider in general, that NFTs are implemented through intelligent contracts in the blockchain. Every stamped token is special and holds unique metadata. Thus, we can't express that NFT marketplaces are 100% decentralized. Thus the idea of DAO brings equivalency to the medium which is quite extreme. For example, In Binance Smart Chain, the individual can't experience any kind of decision-making, only the owner of the platform has the access to do that.
How can DAO-enabled NFT platforms benefit users?
DAO operates as a decision-making mechanism for an NFT platform. While NFT platforms are large in numbers with various types, the popularity of gaming-based NFT platforms continues to grow. In this consideration, let’s comprehend how the involvement of DAO creates a gaming NFT platform more useful to the users.
- With DAOs, users get the right to check policies about restraint of content, assets policy, and auctions.
- DAOs possess the smart contracts and digital assets (NFTs) to bring freedom, removing the vision of the CEO and administration from any NFT platform.
- Users get the chance to stake their NFT and the native token in the dApp to develop rewards out of it.
- Users retain total control over their NFTs even when these are staked or delivered to the liquidity pool.
- DAOs enable the neighborhood to present findings and vote on essential elements of the platforms such as NFT auctions, marketplace conclusions, battle launches, changes in contract policies, etc.
- Users can submit any modifications to the underlying power of the NFT platform through a vote, which decides on a range of problems, including-
- Features upgrade on the NFT platform.
- Dates and guidelines for the live auctions
- Tokenomics of the platform-burning mechanism and token supply.
- Expansion of new assets like gaming characters, wearables, marketplace, etc.
- Addition or Replacement of members in the Security Council.
DAO-enabled NFT platforms have identical characteristics to normal NFT platforms, but the distinction reflects the control model and the license policies. Users in a DAO- enabled platform participate in crucial decisions through voting in three simple steps:
- • Proposals
- • Votes submitted
- • Result
DAO-enabled NFT platforms utilize members’ votes to issue licenses and create modifications to the current rules and procedures of the platform. DAOs enable every user to take active participation in decision-making activities and specify policies for the community’s future through transparent and distributed decision-making. This model aims to bring uniformity, embracing the community members equally to participate in the governance of the NFT platform and deliver solutions through their participation.
Income and rewards
The trend for gaming-based NFT platforms resumes growing because these platforms are adventurous and can develop many rewards and income possibilities for users. DAO helps NFT platform users propose such prospects as NFT staking. NFT staking helps NFT holders make passive income by allowing them to open their NFTs and stake their NFTs into the liquidity pools, all without moving the privilege of their NFTs to others (selling them). With time, we will see more interesting methods to monetize assets. NFT staking platforms are mainstream and are already letting NFT holders profit from their monetization practices.
We have moved over the natural benefits that DAO gets to the NFT platform, but DAO- driven capabilities within an NFT platform are not restricted to this usefulness. An NFT platform can use DAO to deliver its users with a plethora of other creative elements that will help enhance the user experience. For instance, ZooDao is a DAO-enabled NFT platform designed to develop passive income for users. This platform has used the DAO model to build NFT battles and NFT yield farming qualities.
With the use of a dApp, the NFT platform delivers the “NFT Battles” characteristic to the users. NFT holders stake their assets against the opponents (other NFT owners). Others participating in the competition can stake their NFT tokens supporting their selected NFT and earn prizes in NFT tokens and digital assets. The action on the NFT staking platform occurs in five steps:
- Stage 1- NFT staking
- Stage 2- Voting
- Stage 3- NFT pairing
- Stage 4- Battle Starts
- Stage 5- The result
NFT Yield Farming
Users containing both their NFTs and the native permit of the NFT platform can participate in yield farming. For this, they require to pitch their eligible assets and directly stake the assets into the platform’s liquidity collections to provide liquidity to the platform and develop dividends out of it. The prizes are provided in tokens and the specified edition of NFTs. However, not every user staking their NFT is qualified to be rewarded with rare NFTs, and they are first required to review the eligibility and then stake their NFTs.
Regulated through DAOs, yield farming is comprehensively transparent and unbiased. The users can see how their compensation is selected and their eligibility for certain rewards; no data or procedure is confined.
What Is The Story Between The NFT And DAO?
NFTs are digital assets, whereas DAOs are the method to manage references. Now you might wonder what the subject of linking DAO with your NFT marketplace development is. Both of them allow ownership over the investments. As we all understand that designers can tokenize their assets into NFTs using blockchain networks. Through this, the developers will get the verifiability and protection of the assets. However, the customers will get the ownership rights. DAOs will help in governing the NFTs.
When both the DAO and NFT come together, it makes a new form of the decentralized route and investment source in the market. The DAO in NFT platform development provides clarity through a dispersed decision-making system. It will automate the control of the NFT marketplaces where the users will take part in deciding the future of the marketplace. DAO recreates a major role in destroying the walls from the decision-making powers. They will, in return, get the power to vote for the board of directors and other essential authorities.
What Are The Use Cases Of The DAO Enabled NFT Platform?
The DAO-enabled NFT platforms work in a similar way to other NFT platforms, and their use issues are also widespread. Take a look at the domains where they are concentrating on,
- • NFT digital collectibles
- • Sports NFT platform
- • NFT gaming
- • Trading marketplaces
- • Real estate
- • Asset cycle management
DAOs are stated to be the future of work. As a concept and a technology, DAO can change the design of a legacy company by assigning member-owned communities and drawing centralized leadership. Recognizing the strength of DAOs and the core projection given by industry experts, organizations have been frequently developing their infrastructure corresponding to the DAOs. DAOs can support anything from an NFT marketplace to a crypto trading platform to even a Metaverse project.
If you are looking to develop or optimize a DAO-enabled NFT platform, we are happy to partner with you. Please connect with our blockchain developers to consult more.