The DAO of Digital Solutions 2022
Although NFT is the undisputed biggest hot spot in the current encryption field, the Decentralized Autonomous Organization (DAO), which is expected to become the future model of online communities, is obviously also an important phenomenon in the encryption field.
International industry insiders generally expect that DAO will perform strongly in 2022, appearing in many segments such as social, media, investment funds and decentralized protocols, becoming an important trend in the encryption field this year.
DAOs will proliferate in 2022
DAOs have gained a certain level of attention in the last year, and sociocultural DAOs such as Friends With Benefits (FWB), investment DAOs such as ConstitutionDAO (PEOPLE), have managed to lure some investors away from Bitcoin, NFTs and Metaverse, turn to DAO investment products. In addition, such projects also facilitate the organization of people using the DAO approach.
“We’ve already seen the rise of service DAOs of all kinds in 2021, and we expect this to continue in 2022,” said Namik Muduroglu, PrimeDAO’s ecosystem and partnership coordinator. An autonomous collective organization of various DAOs that provide coordination tools.
Muduroglu believes that the growth of the DAO this year comes from two related reasons: the openness and accessibility of the DAO, which in fact will indeed help to establish and Expand the community.
“People can not only work for the DAO and make money with their labor, but also have a voice for the work they are doing; people are no longer cogs in the machine, but active participants in the community and the project. In this regard, I believe in the DAO The number will increase in 2022 and enthusiasm will be high.”
On the other hand, the open and dynamic characteristics of the DAO architecture will also help to encourage more organizations and communities to turn to the DAO structure in the near future.
“One person goes in and out of the DAO organization without much frictional cost, and can even contribute to multiple projects at the same time seamlessly,” said Kevin Ross, head of marketing and communications at BitDAO partner agency Windranger. “In access control, members In terms of incentives, financial management, and general governance, as more and more tool solutions are tried, we will see more and more people find it easier to find active contributing roles within the DAO.”
Ross also believes that, especially in the wake of the COVID-19 pandemic, many will witness a transformation in how people relate to work and work flexibility. From this, this means that DAOs will have the opportunity to penetrate many areas of the global economy. “As long as the right tools are in place, the DAO model will make it easier to discover consensus-aligned communities, channels for enthusiastic work, and ways to earn rewards. The gig economy is giving younger generations more psychological adaptation, and DAO organizations have exactly that flexibility. . In the future, it’s the perfect match.”
Similarly, Kyle Weiss, COO of developer community Gitcoin, said that “more and more” organizations will turn to the DAO model, especially in countries where fundraising is relatively easy and there are no clear regulations.
Of course, “I would also like to see some failures in the DAO space, as many internet companies have failed over time. This is the reality of the field, and we would be foolish to think that the DAO model will solve all business problems of.”
Hot Sectors: Collecting, Social, Gaming, Fundraising
What areas will DAO mainly appear in? People have different views on this.
A spokesperson for HashCash, a provider of blockchain, artificial intelligence and big data products and services, said: “We expect many start-ups to adopt the DAO model in their operations. However, this move will have a greater impact on certain industries, Because the structure of the DAO is more relevant to some industries than others.”
According to HashCash, they expect more DAOs to emerge in the following sub-areas: Operating Systems, Program Protocol DAOs, Investing DAOs, Funding DAOs, Collectors DAOs, Service DAOs, Social DAOs, and Media DAOs.
For example, collector DAOs designed for NFTs and artists have gained attention, Kyle Weiss believes: “This type of DAO will definitely be at the top in terms of popularity. You can see it from PleasrDAO and Flamingo. .”
Social DAOs are another frequently mentioned subcategory, and one that Kyle Weiss is focusing on this year. “FWB, Bored Ape Yacht Club, etc. have shown that people are interested in finding group connections beyond mainstream social platforms such as Facebook. DAOs provide interesting advantages for relationship coordination and more importantly, creating true belonging for participants feeling,” he said.
Kyle Weiss believes that the growth of the ConstitutionDAO (PEOPLE) is partly because people want to be part of it and be able to say “I’m a part of it.” The agreement was formed, and this year is expected to see strong development of social DAOs.
However, given that DAOs can fit into almost any type of organization or social structure, some expect them to emerge in more areas.
“Finance, art, entertainment, media, technology, you name it. DAOs help distribute ownership and decision-making, it’s a universal concept,” says Kevin Rose.
Kevin Rose, who is open to DAOs, also highlighted the possibility of seeing a “wonderful fusion” around DAOs in the game.”Ownership is power, and the idea that players expect to own what they earn is probably more complex than people now expect. It has implications not only for how gaming is viewed as an activity in life, but for this $180 billion industry. How you refactor from the top down also makes a difference.”
Another possible trend to show in 2021 is fundraising and investing. Miakoda Grodsky, a core contributor to YAP DAO, said that DAO will help generate a rapid fundraising model that has been successful not only in ConstitutionDAO, but also in LinksDAO, BlockbusterDAO, MoonDAO, etc. verified. “Hope to see this trend continue in art, fashion, music, and all other cultural subsets, so that individuals can harness the collective power of their communities to accomplish things they couldn’t do alone.”
Regulatory Perspectives May Evolve
How will regulations affect the development of DAOs in 2022? Industry experts expect that the regulatory friendliness of DAOs may be better than other areas of the encryption ecosystem such as DeFi.
“I think DAOs will be more popular than DeFi because the financial system is an important part of society and an indispensable source of legitimacy and control. I really want to see what happens to the market as DAOs are taking back the control and redistribute it to each participant,” said Namik Muduroglu.
For players in the DAO space, unlike Bitcoin and DeFi, it seems premature for regulators to pay attention to DAOs.
“The natural time to predict if or when DAOs will be of interest to regulators is when they are making a splash. That is, when there are huge success stories in the DAO space,” a HashCash spokesperson said. He also noted that the U.S. state of Wyoming passed a law in 2021 recognizing DAOs as LLCs.
Regulatory practices in the U.S. state of Wyoming suggest that DAOs have the potential to benefit from relatively balanced regulation that may not interfere with the overall development and evolution of DAOs.
“In the medium term, the perspective of the regulators also needs to evolve and be more tolerant of these decentralized organizations,” said Kyle Weiss.