Comprehensive interpretation of various types of DAO

What is DAO? Presumably everyone has more or less their own understanding. In simpler terms, a DAO is a promise to share value with the community. So what is the DAO looking for? It is to provide a voice channel for members through governance; it is to form a flat structure and create a flexible workflow; it is to allocate resources to complete a core task.Regardless of size, DAOs seek to solve the core mission of evolving from a group to a success-driven community.

The DAO has now moved to the center stage. According to DeepDao data, there are already more than 180 DAOs managing more than $10 billion in assets and attracting nearly 2 million members. The scope of DAO is slightly wider and there are many types, such as protocol DAO, collection DAO, investment DAO, etc. I think everyone wants to understand the meaning behind it. Next, from the perspective of Metaverse Lab, I will bring you an in-depth analysis of various types of DAOs and high-quality projects in this type of DAO.

The map of DAO

Comprehensive interpretation of various types of DAO

High-quality organization in various types of DAOs

DAO Operating Systems

DAOs start with the operating system used to create them, and the project provides the community with different templates, frameworks, and tools to gather resources and launch their first DAOs. They typically provide smart contracts and interfaces to drive on-chain actions in decentralized communities, and the DAO OS makes it easy for anyone with limited technical capabilities to start a DAO.

Comprehensive interpretation of various types of DAO

The most typical project in this type of DAO is Aragon, Aragon (ANT) is a decentralized platform built on the Ethereum network that provides a modular way to create and manage DApps, cryptographic protocols and decentralization Autonomous Organization (DAO). The ANT ERC-20 Token will enable its holders to govern the Aragon Network.

Investment DAO (Investment DAO)

With the introduction of new types of tokens by the protocol DAO, it seems logical for groups to join forces to invest in them. After a long non-profit DAO, investment clubs have turned the tide by letting members focus on generating returns.While these DAOs face more legal constraints than grant-based DAOs, they show that any group of people can come together to invest in larger amounts of capital with lower barriers to entry.

The most typical project in this type of DAO is BitDAO. BitDAO is a decentralized autonomous organization that hopes to provide a level playing field for everyone in the world by establishing a decentralized Token economy. The protocol is one of the world’s newest and largest DeFi-focused DAOs, managed by BIT Token holders.

BitDAO was founded with the vision to allocate substantial capital and talent resources to drive DeFi growth, primarily in funding, R&D, and liquidity. BitDAO also supports the development of blockchain technology through donations (like Gitcoin) and supports existing and emerging projects through token exchanges.

On June 16, 2021, BitDAO announced the completion of $230 million in financing, of which Peter Thiel, Founders Fund, Pantera Capital and Dragonfly Capital have led the investment, and Alan Howard, Jump Capital, Spartan Group, Fenbushi, Kain Warwick (Synthetix), etc. BitDAO participated in the investment.

Cryptocurrency exchange Bybit has also pledged to contribute 0.025% of its futures contract revenue to BitDAO’s treasury, which will continue to expand as Bybit’s business grows and the overall cryptocurrency industry grows.

Grants DAO (a grant-type (funding/charitable) DAO)

A grant/charity DAO is similar to an investment DAO in that members will pool funds and deploy it into various goals, the only difference is that a grant/charity DAO is invested with no expectation of financial return.

Pioneering this model, Gitcoin describes itself as a community of builders, creators and protocols who come together to develop the future of the open internet. Gitcoin has created a community that supports Web3’s new infrastructure, including tools, technologies, and networking, to advance the open source space. And provide funding for some key open source infrastructure projects that might otherwise struggle to get development funding. Similarly, large protocols like Uniswap, Compound, and Aave have specific DAO functions that allow community members to vote on how to allocate funds to pay developers to promote the longevity of the protocol. Charity DAOs are also emerging today, aiming to reimagine how charitable giving is done. For example, the Dream DAO issues NFTs to raise funds, and then lets NFT holders vote on how to distribute those funds to goals (such as funding civic leaders).

Collector DAO

I believe that everyone is no stranger to NFTs. In the context of NFTs entering the mainstream, collectible DAOs have emerged, the purpose of which is to collect NFTs. The role of the curator group is to implicitly glue together specific artists, platforms, and collections to create long-term value for NFTs.

The previously mentioned Pleasr DAO and Flamingo are both great examples of DAOs pooling resources, making investment decisions together, and sharing the benefits as those investments appreciate in value. Flamingo is a decentralized finance (DeFi) platform based on the Neo blockchain and the Poly Network interoperability protocol. It combines multiple DeFi applications into one ecosystem: cross-blockchain asset gateway (wrapper), on-blockchain liquidity pool (swap), blockchain asset library, perpetual contract trading platform (perp) and Decentralized Governance Organizations (DAOs).

Protocol DAO

In 2018, the rise of Ethereum smart contracts led to an explosion of many new crypto assets and protocols. Back then, developers created protocols (like Uniswap, Compound, and Aave) that allowed people to trade and borrow assets.However, these protocols were designed to be decentralized, and how to manage the growth and evolution of the protocol became a difficult problem to face at the time.

Protocol DAOs emerged not by handing every decision to the development team, but as a way for users to have collective governance over the future direction of development. Typically, the protocol issues governance tokens based on users’ usage and contributions, giving users corresponding voting rights. Any user can propose a protocol improvement, and token holders can vote on whether developers should move forward with the proposal. More tokens = more voting rights.

For example, Uniswap token holders are currently voting on which Layer 2 the protocol should be deployed on.Additionally, token holders can suggest and vote on anything from marketing initiatives to how Uniswap’s $2 billion treasury will be managed.

Comprehensive interpretation of various types of DAO

The protocol DAOs with the largest AUM so far are Uniswap, Sushiswapo, Lido, Radicle, Compound, Olympus, and Aave.

Service DAO (Service DAO)

Service DAO looks like a kind of online talent agency that brings people from all over the world together to build products and services, clients can offer bonuses for specific tasks, and once the task is done, before rewarding individual contributors , and also need to pay a part of the fee to the DAO treasury, and contributors usually also receive the DAO governance token.

Comprehensive interpretation of various types of DAO

Most of the early Service DAOs like DxDAO and Raid Guild focused on bringing together talent to build a complete ecosystem, and their clients include crypto projects or protocols that require software development, graphic design, and marketing.

Comprehensive interpretation of various types of DAO

PartyDAO is also one of the excellent service DAOs, a decentralized autonomous organization responsible for building and shipping products. PartyDAO was originally created to ship PartyBid, the first product PartyDAO developed. Service DAOs can reshape the way people work, allowing talent around the world to work on their own time and gain DAO governance.

Social DAO (Social DAO)

Social DAOs are designed to bring like-minded people together in an online community to coordinate around tokens. A typical example is Radicle, which is a decentralized network for code collaboration. The project’s mission is to develop resilient infrastructure for the open source community that is secure, sovereign, and built entirely on open protocols, not platforms.

Comprehensive interpretation of various types of DAO

So is Friends With Benefits Pro, the Friends with Benefits DAO that sees itself as a collective of unique individuals driving a bright future. It primarily focuses on community fundraising for interesting projects. By organizing around the token, members are motivated to create a valuable community that can share insights, host meetups, and more.

Some other social DAOs use NFTs as a mechanism to unlock community access. For example, owning the Bored Ape Yacht Club unlocks access to Bored Ape Yacht Club’s Discord, events, airdrops, and derivatives. In this case, the perceived value of the community drives the value of the NFT. Social DAOs are still in their infancy, and it will take time to verify which models work and which don’t. But the rapid rise of these communities suggests that they represent a powerful new form of social organization.

Media DAO (Media DAO)

Media DAOs aim to reshape the way content creators and consumers interact with media. These DAOs no longer rely on advertising-based revenue models, but instead use token incentives to reward creators and consumers.

Comprehensive interpretation of various types of DAO

The idea of ​​decentralized media can be traced back to the “Let’s Talk Bitcoin” podcast in 2013, but let’s take the popular project Bankless DAO in 2021 as an example. Bankless DAO is a decentralized community for the coordination and dissemination of Bankless media, culture and education. Its goal is to drive adoption and awareness of truly unbanked monetary systems such as Ethereum, DeFi, and BTC, using the collective participation of the community to achieve this goal.

Comprehensive interpretation of various types of DAO

Previously, the Bankless team airdropped BANK Tokens to readers. Additionally, readers can contribute in Bankless, such as earning more BANK by authoring articles, research, graphic design, article translation, marketing services, and voting on key decisions. At a time when many believe the current media model based on ad revenue is broken, Media DAOs offer a compelling alternative to realign the interests of readers, creators, and media.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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