Everything You Need to Know About NFT DAO

Blockchain technology offers convenient and futuristic applications for businesses and organizations. With its smart contract and technology-led mechanism, corporations can enjoy modern financial tools, including cryptocurrency, Non-Fungible Tokens (NFTs), and many more. A new development uses blockchain beyond cryptocurrency, a Decentralized Autonomous Organization (DAO). 

But what does NFT DAO mean? Well, it is a digitally controllable business model that challenges and disrupts the conventional organizational hierarchy, relieving the necessity of a corporation’s business manager and executive board. In doing so, DAO gives the decision-making power to its members equally and equitably. NFT DAO is an essential breakthrough in the universe of advanced technologies. 

DAO-powered NFT marketplaces guarantee an effective and transparent ecosystem for artists and art enthusiasts to buy and sell their digital art. The best thing about DAO-based NFT platforms is that members are in the driving seat of the organization. 

Want to know more about DAO? Read on as we’re exploring NFT DAO, its working, benefits, and so on. This article will cover every aspect of DAO and its relation with NFTs to help you get started with this revolutionary development in the blockchain domain. 

Decentralized Autonomous Organization – A Revolutionary Model

As the name reflects, DAO refers to the autonomous nature of an organization. Autonomous does not mean that a robot runs the essential business affairs. Conversely, it is an organization with a programmed business model, run on blockchain application, with a governance or decision-making system where participants of the organization contribute with digital tokens. 

In other words, DAO ends the bureaucratic business model of the conventional organization. It owns a democratic mechanism, distributing the power among the participants of a DAO. Picture a person starting their business by establishing an organization. That person will serve as the head of the organization. After recruiting employees, the CEO, alongside a few members of the board executives, will be eligible to make decisions in the organization. 

Suppose an employee puts forward a suggestion that will benefit the enterprise. Regardless of the lucrativeness of the suggestion, the final decision will come from the top hierarchy of the enterprise. However, DAO disrupts such a business model, putting every organizational member in charge of the decisions. Let’s explore the functioning and workings of DAO in detail. 

1. DAO Development

The conventional organizational hierarchy is a barrier to an organization’s progress, limiting its growth trajectory. Moreover, it restricts global access to a business model and connectivity of like-minded people worldwide. It necessitates a concept that ends these limitations by enhancing communication within an enterprise. It is when DAO comes to the rescue. NFT Marketplace development cost is ranging from USD 45K to USD 50K which makes things more challenging and interesting.  

DAO will drastically change the organizational model with applications in several business areas. Blockchain enables the development of DAO-powered operating systems. Protocol DAOs assist enterprises and governments with transparent voting systems. In essence, NFT DAOs are the best platforms for the trade of NFTs and digital arts. Other DAOs include investment DAOs, Social DAOs, Media DAOs, etc. 

2. Working of DAO

A few traits make up the foundation of this blockchain-powered business model. They are decentralization, autonomous governance, and robust business operation. The smart contract sets the foundation for rules and regulations for the organization to operate and fulfill business operations. 

With digital tokens, participants can go through the governance process, allowing them to vote for a change in the organization. For instance, a member of the DAO proposes an action in the organization. It will appear to every member with the possibility of voting in support or against the decision. With more votes, the change will come into existence. Thus, its functionality revolves around the members equally. 

Lastly, the decentralized nature of DAO removes any intermediaries from the business operation. With no third party intervening in the digital enterprise, manipulation, and external control find no way into the DAO. This functionality of DAO promotes proactive participation from members, providing them with a sense of control within the organization. 

A Closer Look at NFT

Non-fungible tokens, or NFTs, are digital assets with a similar concept to cryptocurrency. Both of them operate on blockchain technology, meaning they are decentralized or free from central authority governing their operation, and their transactions are publicly available. 

In NFT, the non-fungible part refers to the uniqueness of a digital asset. In other words, NFT is unique and the only art selling on NFT marketplaces; anyone with adequate capital can own it. Biggest NFT marketplaces bridge the gap between creative artists and art enthusiasts for a smooth trade of NFTs. 

However, NFTs are costly and difficult for small investors and organizations to acquire. According to a report, the forecasted number of NFT users globally will reach 19.62 million in 2027. Collector DAOs or NFT DAOs play a vital role in this figure here. Collector DAO refers to DAO enabled NFT platform development to assist like-minded buyers or creators to acquire or sell NFTs on the go. 

NFT DAO – A Democratic Synergy

The inception of NFT DAO has introduced opportunities beyond imagination, blurring the line between expensive NFTs and small and mid-sized investors with less or no community to support them. DAO NFT projects will provide a democratic synergy of NFT and blockchain for effective participation in NFT collection. 

With a 91.8 million USD price mark, Merge by Pak becomes a record-breaking NFT from a living artist. Over 90 million dollars is a massive capital for digital art enthusiasts to buy alone. Therefore, NFT DAO offers creators and NFT fans a collective goal of acquiring and selling digital art by collecting capital and owning a fraction of the NFT. 

Moreover, DAO enabled NFT platforms allow participants to create NFT projects with a dedicated community that promotes transparency, autonomy, and an effective ecosystem. Thus, low-capital investors and collectors can take part in NFT collections. Creators can earn riches with a thorough governance system within the NFT DAO. 

Benefits of NFT DAO

DAO enabled NFT platforms list extensive features and characteristics. NFT creators and investors can benefit from the versatile perks that DAO NFT offers. Imagine a business where you act as a decider on essential matters. Furthermore, you have several others on the board with similar goals to achieve, guaranteeing a lucrative outcome effortlessly. 

Here are a few benefits of NFT DAO for artists and investors. 

1. Collaboration of Creativity

DAO development in the NFT landscape paves the way for creative people. With DAO on the horizon, every community member contributes to developing digital art or NFT. Thus, they create a collective NFT with much better worth and credibility in the NFT marketplace. 

With NFT DAOs, creators can leverage their artistic expression for excellent financial rewards, boosting their gains with a community with the same goal. Notably, any digital masterpiece in an NFT-based DAO does not belong to a single entity but to the entire community equally based on their collaboration and contribution. 

2. The Power of Token in DAO NFT

In NFT DAO, each digital art or NFT functions as a token for governance in the organization. Tokens provide the community with riches and financial gains and serve as a vote for the development and modification of the vibrant community. 

The NFT project you contribute within a DAO will guarantee your ownership and membership. It paves the way for you to influence your contribution to the DAO’s decision-making process. Thus, future projects or business ventures will need your vote on taking a step toward reshaping the collective destiny of the DAO. 

3. Collective Financing of NFT Projects

A member of the DAO NFT has exposure to a plethora of opportunities from a financial standpoint. Picture a popular NFT collection worth millions of dollars. It becomes a challenging task for a single person or those without a community backup to own it. Therefore, a DAO membership lays the foundation for collective ownership of an NFT, making it easier to benefit from an NFT even with low investment. 

Several users pool their resources and financial assets in an NFT DAO to get an NFT that increases its worth and credibility in the marketplace. Imagine a vibrant community to power an NFT project. Individual artists will love to join the community since they get an opportunity to improve and sell their NFT with a rewarding outcome. 

Use Cases of NFT DAO

Given the benefits of DAO in various industries, people from diverse areas join the realm of DAO. It has groundbreaking advantages in financial and creative landscapes. With such functionality, DAO is on the development boom, especially in the NFT domain. Many NFT enthusiasts have devised NFT DAOs, and multiple NFT marketplaces have joined DAOs. 

As per a report, DAO has witnessed an immense growth of over 660 percent since 2019. Let’s look at a few use cases and enterprises using NFT DAOs. 

1. Rarible

Rarible is among the first NFT DAOs with a community-centric business model. Alexei Falin and Alexander Salnikov co-founded Rarible in 2020 to streamline a vibrant community of NFT enthusiasts for projects and fundraising. Since its inception, it has gained immense value as an art-focused and creator-friendly DAO marketplace. 

RARI is the native token of this NFT DAO that users can use to govern the marketplace. RARI is the driving force for the modification and upgradation of the DAO. When users participate in the platform activity, they get RARI, offering them an opportunity to build a reputation in the DAO. 

2. YGG DAO

Yield Guild Games (YGG) DAO is a borderless organization that uses smart contracts based on the Ethereum blockchain. YGG is an integral player in the gaming ecosystem as Gabby Dizon is the platform’s co-founder, owning multiple gaming NFTs and tokens in the GameFi. 

The native token for the governance on the YGG DAO is the YGG token. Members of the YGG DAO can use its token to participate in the voting system of the platform for acquiring ownership of NFTs. 

YGG DAO has introduced another concept, SubDAO. The specialized form of DAO deals with specific areas of the organization. For instance, the YGG DAO deals with almost every game and its digital tokens, while each subDAO in the organization observes specific games and their related NFTs. 

3. PleasrDAO

PleasrDAO stepped into the realm of DAO with the purchase of its genesis pplpleasr’s Uniswap V3 NFT. With its first NFT project, PleasrDAO has set its mark in the industry by collecting culturally significant digital artworks. 

This NFT DAO platform is known as an art-collecting empire in the NFT landscape. It offers collective movement by normalizing community-led ownership of digital assets. Members of PleasrDAO own fractions of iconic NFTs in a decentralized and autonomous manner. 

This DAO NFT marketplace has its native token, the $PEEPS token, to regulate and govern the distributed ownership of NFTs and DeFi assets within the platform. It buys digital art and makes creators add to its worth to increase its financial gains. 

The Future of DAO

DAO offers a vast horizon for developing business models beyond finances and creativity. CityDAO is an autonomous organization serving the USA’s real estate needs with over 10,000 citizens in 100 plus locations. Simply put, a DAO brings passionate and like-minded people from around the globe to a common table for a smooth contribution to a project. 

DAO exchange development is an open-source procedure, meaning its code is visible and accessible to the public. On the one hand, it eases the modification of the existing project. However, it also threatens digital organizations from malicious actors and hackers since they can copy the code and develop a phishing clone to misguide people in acquiring their assets. 

Therefore, the future demands a closer look at the revolutionary business model. With a tamper-proof system and tech-savvy governance, DAO will attract more people. Furthermore, interoperability, legal consideration, and scalability will advance DAO NFT and other DAO-powered areas. 

Conclusion

Decentralized Autonomous Organizations (DAOs) have explored new ways for users to come together and work without the conventional organizational structure. In such a system, not a single person has the authority to manage the organization, but every member can control the development and change in the organization with a voting system. 

At Debut Infotech, we help enterprises with advanced technological solutions, including smart contract development. With our expert team of top blockchain developers, your organization will benefit from industry-standard dApp development. Furthermore, we assist in devising your DAO enabled NFT marketplace development.  

You are a click away from our expert consultation that will help you streamline your thoughts about the development of NFT DAO. We strive to write about blockchain and other relevant technology. Read more about them with our other blog posts about DAO, blockchain, and more. 

NFT DOA FAQs

Q. What is a DAO NFT?

A. DAO NFT means a borderless organization for the NFT marketplace that involves multiple like-minded people aiming to raise funds for acquiring digital art pieces or creating an NFT project with collective contributions from creative artists. 

Q. What is a DAO good for?

A. With an end to the bureaucracy and intervention from central authority, DAO enables participants to have an efficient and transparent business operation. It guarantees equal participation and authority to every member of the DAO, enhancing the financial gains. 

Q. Is DAO the future?

A. Because of the latest developments in Web3 and blockchain technology, the majority preferred DAO. It reflects the futuristic nature of borderless and community-centered business models. 

Q. How does DAO raise funds?

A. DAO is community-centered, meaning every organization member contributes via tokens to create or support a project. In NFT DAOs, expensive NFT collections become accessible through fundraising. 

Q. Is DAO risky?

A. Smart contracts that build the foundation for DAO may have faulty code. It can affect the organization’s functioning, leading to a financial loss. Since a DAO is open-source, expert developers can contribute to modifying and fixing the code in the smart contract, making it safe and reliable.