If you are passionate and interested in collective investment, then DAOs (decentralized autonomous organizations) will probably be one of your main focus points. In case you are only now entering this field, you should know the history of DAOs so far. This way you will better understand how it all began and where we are going next. Collective investment has definitely come a long way, but as analysts forecast, the best is yet to come.
In this article, we will talk about the diversity of the DAOs landscape and how many types of decentralized autonomous investment clubs there are. Most importantly – how can you get involved so that you benefit from the opportunities of crypto, NFTs and Web3.
Short DAO Guide
Before diving into the ins and outs of DAOs, it’s worth remembering what these collectives are. DAOs are based on an open-source code and do not require specific management or a board of directors. In other words, these decentralized organizations allow people to gather in large numbers, collaborate, and pool funds. By doing so, they can pursue their investment by using a predefined blockchain-encrypted software that nobody can alter. More specifically, people can use DAOs to collectively invest, having the certainty that the organization will stick to the agreed plan and rules.
With blockchain technology, such investment clubs benefit from the high security of decentralized networks, making it very hard to get hacked. Moreover, various processes inside the organization are also running smoothly and securely. For instance, on the Unique.vc dApp, voting, treasury management, and transactions are all taking place on-chain, in a safe and transparent manner.
Different Types of DAOs
By now, we are already in the second phase of the DAOs phenomenon. Since the first organization took shape in 2016, the entire landscape matured and diversified significantly. Meaning, we are now witnessing an accelerated expansion of DAOs in both number and purpose. Moreover, this has a direct impact on the global adoption of crypto, NFTs and the development of Web3. Today, decentralized autonomous organizations are diverse and meet various objectives:
Protocol DAOs
A protocol DAO is a type of organization usually governing a decentralized protocol. This can be a borrow/lending application, decentralized exchange, or another type of dApp related to DeFi and beyond. Two of the biggest are MakerDAO and Uniswap. MakerDAO is basically a decentralized global reserve bank that resides on the Ethereum blockchain. By effectively leveraging Ethereum smart contracts, MakerDAO has grown into one of the most profitable independent financial projects. By doing so, it has empowered so many people in the process, sitting at a market cap of $128,855,013.
Investment DAOs
An investment DAO is a decentralized organization that invests funds as a group. Anyone who owns the investment DAO’s governance token can participate in the decision-making process. The more of the token you hold, the larger your voting power. Investment DAOs may venture for crypto, NFTs, but also other kinds of assets.
Collector DAOs
Following the recent surge in popularity of collector DAOs, owning and collecting NFTs has reached a new level of enthusiasm and profitability. It’s easy to see why. Investing within a collector DAO allows you to access bigger NFT investments that would otherwise be out of reach for a single individual. One such successful club is Flamingo. The association is holding a reputable NFT portfolio, putting value in the hands of every investor involved. Their current market cap is evaluated at $36,604,290.
Media DAOs
Media DAOs play a key role in today’s society that goes beyond investment. They have a big impact on how people follow and consume information. Essentially, media DAOs reinvent the traditional news channel by creating community-driven content. In a world where most of the information is channeled through the media outlets of a handful of corporations, media DAOs are a breath of fresh air.
Gaming Guilds
Gaming guilds is another area where DAOs seem to thrive. The Metaverse and Web3 gaming is now offering new opportunities for everybody to earn real money by playing games. The play-to-earn ecosystems of platforms like Axie Infinity or Decentraland have grown into huge economic systems. Skilled players are gathering in gaming guilds, monetizing their participation in these virtual worlds. Moreover, they collect or create in-game items such as tools, in-game real estate or characters. These assets allow anybody to leverage their participation in the game, so they become precious NFTs that get traded on the marketplace.
On a broad view, DAOs offer the unique opportunity to grow and build communities and businesses in a decentralized way. There are other types of such venture clubs as well, but the landscape is too diverse to cover in a single blog.
Advantages of DAO Investment
Now that you are more familiar with the rich DAOs landscape, it’s easy to understand… No matter what your area of interest is, there probably are several well-established decentralized organizations already having success with that. The good thing about blockchain-powered investment is its diversity. You can choose something you’re passionate about, find a collective of like-minded people and pursue your goals together.
Another advantage of DAO investment is that great power comes from people gathering together. Not only in pooling funds but also in pooling knowledge. This allows you to benefit from the expertise of more experienced investors and learn something new. When you are part of such a club, risk and opportunity are generally better mitigated compared to acting on your own.
Unlike traditional investment – banking, hedge funds, stocks, and commodities – DAOs offer a lot more accessibility. It’s easier to join and invest with a DAO, without having to go through stiff bureaucracy and protocols. Equally important – DAOs welcome investors regardless of their profile, as long as they share the same goal. What this means is that you can join and invest smaller amounts of money. This creates a more democratic and inclusive landscape where everybody has equal chances.
Ultimately, investing within a DAO means you have a hand in the 4th industrial revolution. Previous technological leaps were driven by the steam engine, oil and coal, and more recently, the internet and computers. The current shift is heavily driven by blockchain technology, heralding a new way information and money circulate.
Start Co-investing
Are you taking advantage of this new age of investment? On Unique.vc – a Solana-based dApp, you can find a great diversity of investment syndicates and VC funds. From investors backing NFT and crypto startups to DeFi projects, the Unique.vc platform hosts meaningful investment groups that are making the most of the Web3 expansion.
Will you be making the most of your investment opportunities? Do you have a plan for the current bear market? We’d love to hear all about it on Unique Venture Club’s Discord and Telegram channels. Come by for inspiration and a chat with like-minded people. When you feel confident, join the Unique.vc dApp to begin your journey.
