As opposed to global corporations that still function on a territorial basis, DAOs (decentralized autonomous organizations) are borderless entities that do not need a particular space for their operations. Equally interesting — DAOs push forward a distributed decision-making process, as opposed to the traditional centralized control. Also, the information flows in a transparent way rather than being controlled by a few.
Currently, DAOs are eroding the established hierarchies and are disrupting several industries by proposing new economic models that are more in tune with the speed of today’s world. Simply put, collective investment brings massive innovation — the liquidity of resources: money, information and talent. From finance and investing, to Web3 development and digital art collections, blockchain-based DAOs are already well underway in reshaping the way people invest and work together.
How DAOs Are Changing the World
Investment Clubs are bringing much innovation on several fronts:
- DeFi (Decentralized Finance) — DAOs are offering trustless social and economic interactions that offer better financial products than traditional finance. Where legacy banking no longer understands people, DeFi platforms offer passive income plans and crypto products that are more in tune with the modern investor.
- Investment — Investment Clubs in the form of DAOs can become agile organizations where large groups of people can pool resources together fast and invest in crypto, NFTs or other digital assets. Moreover, on platforms like Unique.vc, on-chain investment benefits from flexible governance models and a transparent and secure manner of managing funds and voting. All these features are not usually available with independent protocol DAOs or traditional investment organizations like hedge funds or bank investment.
- Art Collection — There just isn’t a better way for a large group of people to venture for digital art and NFTs than through a DAO. All voting processes and proposals take place in a democratic way and talent can be organized according to everyone’s expertise to best deal with NFT collections, new acquisitions, and treasury management.
- Metaverse — Recently, the Web3 space has grown into a huge alternative economic space. Platforms like Axie Infinity, Decentraland or The Sandbox offer unique play-to-earn mechanics and most of them are managed through DAOs.
Examples carry on with blockchain-based organizations offering better business models for crowdfunding, community management or social media. Imagine a social media platform that runs based on rules voted by all users, as opposed to a board of directors that act in their own interest. Think about how crowdfunding looks like when all capital is being managed in a transparent way and every single spent dollar can be traced down. Certifying the trust and reliability of the process is done by the technology in itself, not a group of people or regulations.
How to Invest with DAOs
While the opportunity is already unfolding, the question presents itself: how to take advantage of blockchain Investment Clubs and how should you integrate this new economic frontier into your life? The good news is that DAOs are one of the most accessible and inclusive economic environments for every single person — regardless of their profile.
Investing within an Investment Club is now one of the easiest methods for anybody to get exposure to crypto and NFTs. On platforms like the Solana-based Unique.vc, you can easily join or found an investment club and begin your adventure in the Web3 space.
Why is this a good idea as opposed to investing alone? How is Unique.v disrupting the investment process compared to hedge funds, stock market investment, and other traditional methods? Let’s get familiar with this new investment solution!
Collective Investment Clubs — The New Investing Solution
In 2021, an investment club called Constitution DAO was formed as a single-purpose DAO. They raised $42M in only seven days to bid on the original copy of the United States Constitution. This is just an example of how fast and efficient people from all over the world can collaborate to pool funds together to follow their purpose and profit. Of course, such investments can not be performed alone, unless you happen to dispose of unlimited capital. And even so — besides the concentration of funds, DAOs offer another major advantage: the possibility to harness and use the knowledge of everyone involved. By investing together with an Investment Club, you can access bigger investments and leverage the collective expertise regardless of time, space and number of people involved.
Wall Street hedge funds and Venture Capital came to life when investment was pretty much an exclusive climate. It wasn’t for everybody and to this day, investing through a hedge fund has its drawbacks. First, the margins that hedge fund managers make are rather slim. It works great if you are investing millions, but for an independent investor who is operating with a fraction of capital, small percentages do not work so well. Second, getting a return on your investment usually takes a whole year, during which your funds are locked and you have limited to no options to interfere.
The major shift that DAOs, Web3, and platforms like Unique.vc bring to the investment space is that they make investment more inclusive and accessible. Just like the internet boom from 20 years ago offered information and communication to almost everybody on the planet, digital investment is now offering equal chances to anyone who wishes to invest freely, regardless of the amount of money.
A Better Investment Space
We are witnessing a disruption in the investment environment. Traditional hedge funds and banking investment will not disappear, but the democratization of blockchain-based investment will bring many more people into the game. The new age of investment is for everybody, not only experts. In fact, anyone can become an expert nowadays with the right tools and partners by their side.
Investment is no more an exclusive practice for the elite only. Joining or founding an investment club on platforms like Unique.vc is simple and fast and you can tap the potential of crypto, NFTs and Web3 by leveraging the best tools and a performant platform to help you make the best decisions.
How will the investment and economic space look 20 years from now? This would be impossible to predict! But we know how it was 20 years ago, and it was nothing like it is today. Unique.vc now offers everybody the tools to become an investor, signaling a major positive economic disruption that has the potential to liberate and democratize finance on a global scale.