How to play the composability of “NFT+DAO”?

The idea of NFT+DAO is currently very attractive to Web3 sustainability enthusiasts, as well as for project teams. However, we have another question to face: how to educate and motivate “NFT+DAO” to become more meaningful? From my standpoint, there are three simple advantages:

  1. Attract more NFT enthusiasts like me;
  2. Showing through the power of the DAO that NFTs are not scary builds a bridge between the public and NFTs;
  3. Give more value to simple NFT projects and reward whoever owns them whenever possible.

Due to the strong involvement of speculators, many believe that NFTs are far from the original purpose of the Web3 industry. I think this part is mainly caused by negative environmental impacts, such as garbage projects and hacking accidents, which are not easy to prevent. NFTs can also lead to price speculation and disruption of ecosystems that are truly valuable. Therefore, NFT+DAO aims to prioritize authenticity and security.

1 NFTs, DAOs, and Layer 2

Today, NFTs are one of the hottest areas inside Web3 and have proven their ability to assist in job creation, promote social inclusion, preserve art and historical assets, preserve asset diversity, generate sustainable income, and enhance blockchain network benefits when properly planned and managed. I encourage every Web3 participant to work harder to improve the situation and create a future of which we will be proud.

Also, if we talk about NFT, social, and on-chain ecosystem sustainability, then the content will revolve around the topic of proof-of-work and proof-of-stake. Previously, miners verified transactions on the Ethereum blockchain based on the previous PoW protocol. Transactions are collected by miners and posted to the Ethereum blockchain as ordered blocks.

In PoS proof-of-stake, validators are used instead of miners, and these services serve the same purpose as miners, but instead of putting a lot of money into energy consumption, they use ETH as insurance against dishonest activities. With the recent MERGE, Ethereum’s previous energy consumption was reduced by 99.95%, which means that the total energy required to secure Ethereum is expected to be less than 0.01TW/year.

Therefore, NFT+DAO’s choice of the Ethereum blockchain’s Layer2 solution is already an unstoppable trend, because we believe that it is the most suitable for social needs. At the same time, NFT+DAO projects should also support the Ethereum Virtual Machine, allowing the same functions as the mainnet. Its benefits are reduced cost and scalability. At least initially, DAOs need to offer NFTs to customers for free to build trust and build higher engagement.

2 NFT future without threshold

Tokens will change the way consumers interact with Web3 brands and organizations. The DAO currently levels the meaning of the token threshold, but convincing the masses to abandon the lifestyle they have become accustomed to and encouraging them to move to web3 is challenging. DAOs can educate people about NFTs and improve many people’s biases against the technology, and I believe DAOs will be able to inspire more people to do so.

When it comes to NFTs, the DAO’s main goal is to show users that some of their concerns may be wrong and build a bridge platform for them to Web3 and do their best to make that happen. For simplicity, let’s use an example for the threshold-free NFT DAO process:

How to play the composability of "NFT+DAO"?

Basically, when a user owns a DAO token, they get something different, something like:

  • Entrance tickets to the stadium;
  • Membership pass for social clubs;
  • Subscribers to digital content.

All of the above unlocks special or differentiated access for individuals, whether it’s watching a game in the stadium or at home, or reading the news versus just reading the beginning. So, what’s different about NFT DAOs built on top of tokens? At the heart of Web3 is unique asset identity and ownership of objects.

This ownership is achieved through tokens and wallets. Digital tokens can be stored in the user’s digital wallet. Now, this digital wallet can theoretically carry it through both physical and digital worlds. As more brands tokenize products and services, your digital wallet will continue to be filled with various forms of tokens, and the use of tokens across brands and brands will expand.

3 The power of blockchain networks

If a user owns DAO tokens, they have access including ticketing, virtual world celebrity/athlete meetups, physical/virtual fashion shows, Metaverse differentiated shopping experiences, exclusive access to products, free product redemption, physical x digital products, viewing/consuming digital content, news subscriptions, blog/podcast access, video streaming, music streaming, ad-free content, participation/voting DAO community, exclusive community chat, voting rights, DAO or token-based community management and governance.

Many brands have established NFT brands in Decentraland and The Sandbox, as well as using tokens and more to access real-life events, Shopify enables brands to unlock community-centric commerce, TIME connects digital art token ownership to their digital content, and almost every DAO uses token ownership as a form of access to the community.

How to play the composability of "NFT+DAO"?

With verifiable digital ownership through tokens, DAOs can now build better digital relationships with users. While there are risks (wallet security, fraudulent apps, token scams, etc.), there are huge opportunities for DAOs to create unique experiences and products for their loyal users, collaborate and collaborate with existing token-based products and companies, and create meaningful DAO communities that encourage engagement and instill a fresh sense of personal agency.

A DAO is a grouping of different people working toward a common goal. Profit-oriented DAOs are starting to use NFT’s services and creating a better user experience. Web3 has produced great innovations, attracted new talent, and driven paradigm shifts, which is a long way off. However, we can all improve protocol performance by asking the right questions to question existing solutions.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-to-play-the-composability-of-nftdao/
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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