What Is a DAO and Its Relations with NFT


Picture : Binance Academy


Techspace - Metaverse, Web 3.0, and the demand for new, decentralized technology approaches have driven improvements to blockchain technology. In recent years, blockchain has crept into many workplaces and everyday activities, from DeFi, GameFi, NFT, and DAO. 


What is DAO?

DAO, or Decentralized Autonomous Organization, is an open-source blockchain protocol governed by rules. Its elected members create this protocol and automatically carry out specific actions without needing an intermediary. The DAO concept was first proposed by the founders of BitShares, Steemit and EOS (Block. one), and Larmier in 2015. Then in 2016, the idea was refined by Vitalik Buterin of Ethereum. DAO itself can help keep a network safe and optimal without requiring manual intermediaries from its members.


The initial idea of ​​creating a DAO was to establish a fully functioning institution or organization without the usual managerial order in an organization. Its primary role is to unite people with similar interests to work towards a common goal. DAOs differ from traditional executive-run organizations in that they use a set of rules written in digital code and enforced by a network of computers running shared software.


Simply put, DAO is an institution or organization managed by computer algorithms, so it is not controlled by humans directly. To become a member of this organization, users must join by giving their cryptocurrency. By owning a DAO crypto asset, users automatically get the power to vote on proposals and updates. This is, of course, adjusted to the number of DAO crypto assets they have.

What does DAO have to do with NFT?

The relationship between DAOs and NFTs is not limited to DAOs made for collectors. The entire function of DAOs is often affected by the use of NFTs. Decentralized autonomous organizations operate on a specific set of rules defined using smart contracts on the blockchain. No central authority can override or make changes to smart contracts, as modifications are only made by community vote.


Generally, tokens are required to participate in DAOs, and token ownership is usually accompanied by various governance arrangements to ensure users can influence decisions in the broader group. As a result, NFT naturally plays a vital role in DAO operations in general.


Collective Ownership

One way the DAO helps the NFT industry is in collective ownership of an asset. Usually, when investing in NFT, especially blue-chip projects requires significant capital. Unfortunately, not everyone has this capital.



Picture: Ok Telegraph

 

As such, several DAOs were established to allow a group of people to collectively own a high-value NFT without having to spend a lot of money. This allows a larger group of people to have more control over the NFT market. Take PleasrDAO, for example; an organization made up of DeFi leaders, early NFT collectors, and digital artists who raise funds for the highly prized NFT. For all purchased NFTs, PleaserDAO members collectively share costs and asset ownership. 


Community Governance

Another relationship between DAO and NFT is about community governance. DAO is an excellent place for NFT enthusiasts and project creators to collaborate and decide on future project plans. Several NFT projects have established their DAOs.




Picture: Youtube Gutter Cat Gang


Top NFT collections, such as Gutter Cat, already have the DAO Gutter Cat Gang. The organization's goal is to take DAO Gutter Cat Gang beyond the standard NFT community or club. Those with NFT Gutter Cat can vote on certain decisions, such as community project initiatives. Generally, artists must sell their NFT to DAO in exchange for DAO tokens. In addition, token holders will get voting rights in the organization. An example is WHALE, a social pass powered by The Vault art collection NFT platform. The DAO manages the Vault, where members hold WHALE tokens and can continue contributing to the project's growth.


NFT Creator Collectives

A solid community is critical to the success of an NFT project. Building a community for famous artists, celebrities, and artists with a large fan base or following may be easy. Unfortunately, this is not the case for newcomer artists or artists. This is where the presence of the NFT creator community regulated by the DAO is formed. This community is a collection of NFT creators who help raise funds, create marketing strategies, community building, and much more by allowing groups to choose the projects they want to succeed.



Picture: Suara


As one of Indonesia's most significant crypto asset exchanges, Tokocrypto is also present to facilitate the development of NFT in Indonesia. After presenting TokoMall, which is a particular marketplace for a place to showcase NFT. The Tokocrypto Ecosystem aims to accommodate actors working in the NFT ecosystem in Indonesia. Joining Tokocrypto is easy; you only have to visit the NFT server on Tokocrypto's Discord channel. 


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