Have you heard of NFT DAOs? A new trend shaping NFTs
2021 brought with it a wave of blockchain technology and Non-Fungible Tokens (NFTs). The demand for digital art and its awareness grew immensely during the months of March and April. Even though the hype has died down to some extent, it has ensured that NFTs are here to stay.
Traditionally, the art industry does not often allow artworks to be shared or co-owned. There aren’t enough well-structured tools for such ventures to be effective. However, due to blockchain technology, people can now organize themselves and jointly pursue goals without knowing each other or trusting a third party. It is now easier to create a safe and transparent environment for the co-ownership of digital artworks. We can now significantly reduce the barrier to acquiring digital goods and democratize access to digital assets as blockchain technology allows us to tokenize virtually everything from physical items to intangible works of art and collectibles. In addition, blockchain enables users to sign tokenized items with a unique piece of code, which allows them to secure ownership rights and protect the virtual item from further replication.
However, not a lot of people can afford to spend seven figures on digital art to win a bidding war. This led to services like NIFTEX and Decentralized Autonomous Organizations (DAOs) that enable multiple parties to come together to buy high-value NFTs with ease. In this article, we will talk about NFT DAOs, i.e., DAOs focused on purchasing or managing a portfolio composed primarily of Non Fungible Tokens.
What is a DAO?
DAOs, or Decentralized Autonomous Organizations, like most organizations, act according to a pre-defined set of rules. However, unlike centralized organizations, DAOs don’t rely on trust from any third party. DAO contracts are immutable and can’t be manipulated or misinterpreted. DAOs create a layer of transparency that enables people to collectively team themselves up into groups with a common goal without the requirement of centralized decision power.
Examples of NFT DAOs
PleasrDAO is set to continue buying and commissioning NFT artwork but also invests in decentralized finance and runs an incubator to advance its mission. The current goals are to extend the collection, incubate new crypto products and artists, and angel investments in the crypto market.
Flamingo is a DAO whose main activity is researching and using emerging investment opportunities in the field of digital assets on the blockchain to grow DAO treasury. FlamingoDAO is convinced that blockchain collectors are a new wave of merchants and curators.
Each user, who is not even a DAO member, can purchase one of the works of art from the JennyDAO treasure after obtaining the appropriate number of tokens.
A completely different niche of the NFT market has been chosen by YGG DAO, which actively invests and manages in-game assets from NFT games.