DAO's are great for allowing multiple people to coordinate, establish transparent governance, and pool funds trustless.
What that pool of funds purchases with it's collective purchasing power could theoretically be anything, but right now an emerging trend is digital collectible NFT's.
By teaming up and coordinating efforts and funds, digital collectors are able to purchase NFT's that would otherwise be too expensive or perhaps even too risky to be purchased by an individual on their own.
A number of collector DAO's have now been formed with the sole purpose of purchasing NFT's, they are BeetsDAO, PleasrDAO, Ark Gallery, and FlamingoDAO to name few.
Collectively they have already purchased millions of dollars worth of NFT's which are now under decentralized ownership and management.
Pooling resources to gain leverage for the purposes of business is certainly nothing new and is something that regularly occurs in the business world. As an example I know two businessmen that recently came together to purchase a large commercial property in the center of town.
On their own the purchase would have been expensive and created too much risk, but collectively made financial sense. Both parties are able to avoid being over leveraged and are also able to benefit from the business experience of two rather vs. one. This is just a simple example of a real world business partnership that is mutually beneficial.
One of the main reason this is possible is because the two partners have a pre-existing relationship with established trust.
Being able to remove the element of trust with all governing rules written in a smart contract opens the doors for partnerships between people from all corners of the world with no prior relationship. All participants are able to come together under one unified set of rules and coordinate with limited risk.
How can a DAO be used to create governance and allow multiple parties to coordinate on a fair and even playing field?
Take Ark Gallery as an example. Launched last year for the purpose of collecting CyptoPunks, an original Ethereum NFT project.
The Ark Gallery DAO allows it's participants to own a fraction of one NFT, but also provides a set of voting rights that could enable the collective owners to sell a particular asset if an attractive offer is made. Proceeds from the sale are distributed to DAO token holders based proportionately on what they hold.
If you believe in the future of web 3.0 you'll surely appreciate open source technology that benefits everyone and pushes the envelope in terms of lowering the barrier to entry for future developers.
It is my hope that we start to see the emergence of open source DAO creation tools that provide a relatively simple UI for non techy types to come together and form DAO's for all kinds of purposes.
I think this will be one of the keys to driving DAO adoption and taking decentralized tech to the next level. Something I'll be keeping a close eye on going forward.
Ciao for now,
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