NFTs in IdavollDAO, a gradual adaptation.
Imagine a world, not controlled by board members or teams of lobbyist behind the door scheming, but rather made up by an open disturbed network, owned by the very people who’s driving, contributing, innovating, entertaining and fulfilling in it, that’s what DAO is all about, this is what exactly what IdavollDAO is striving for, is what the NFT artists and owners are aiming for, and today, these two worlds are coming together.
In essence, DAO is a purely Internet-native organization, lacking central leadership, but operates through chain rules fixed in smart contracts. This allows a bottom-up decision-making process where consensus is reached through voting. This part is where the cryptocurrency comes into play. It acts as a governance token and allows holders to participate in all important decisions. But where could NFTs come into place in all this excitements? Let’s dive into more details.
NFTs is undoubtably the driver of Crypto innovation in the second half of 2021
NFT sales had increased to 2.69 billion USD in the first half of 2021, users had sent at least billions in USD in cryptocurrency contracts in Ether to be associated with the NFT market and collections. Archive files, digital animals, music, memes and even tweets are converted into tokens and sold for millions of dollars, while providing artists and creators with a virtual market that is constantly moving towards a digital world.
Although its popularity this year is certainly driven by mysterious art collections, including The Bored Apes Yacht Club and CryptoKitties, and markets like OpenSea, which drive most of the traffic, the main purpose of NFTs is that they can provide public Proof and proprietary insurance.
DAO and NFT, a merger of eventuality
The DAO’s vision for a property-based economy has also been recognized by the NFT sect, which became the “next big thing” of cryptography this year before the DAO. This can be proved by Google also breaking the trend record and becoming the word of the year in the Collins dictionary.
The earliest DAO that involves in NFTs are investment DAOs, where the sole purpose of the DAO is to gather funds into NFT investments, such as the purchased rare Wu-Tang Clan CD at 40k USD. Another case, despite its unfortunate yet expected failure, attempted to purchase a rare copy of US constitution, and gathered 200k USD worth of funds in ETH.
Now, there are other distinct NFT applications proposed in IdavollDAO, such as NFT as a DID (decentralized identification) method for investment DAO, or interactional NFTs for social endorsement and approval as both identification, popularity and contribution for social-fi in DAO.
Although it is difficult to argue about who supports whose rise, NFT and DAO have now evolved into a symbiotic relationship. This has driven the growth of these two industries. But how does DAO help the governance and development of NFT? Can both get a place on Web3?
To answer this question, we must understand the relationship between these two entities and how their ecosystems develop together.
Although NFT is a digital asset, DAO manages the organization through tokenization. Although artists can transform their creations into blockchain-based assets to ensure security and verifiability, DAO helps realize the public ownership and governance of these assets. DAO also helps budding breeders to form communities, which will facilitate crowdfunding, investment, support and marketing, which can be nurtured through future profits.
Promote the growth of public ownership
To do this, creators must sell their NFT to DAO, and DAO will mine tokens and exchange them for collective or partial ownership of the NFT. Although NFT serves as the backing asset of the DAO currency and provides value, the ownership of the token will ensure that DAO members have a say in governance.
They can then vote on the fate of the NFT and profit from the possible appreciation of the token price. Due to the uniqueness, non-fungibility and subsequent scarcity of NFTs, both NFTs and tokens used as collateral may increase their value.
In addition to helping young artists, DAO can also provide a channel to invest in top NFT projects, otherwise these projects will require millions of dollars in expenditure. PleasrDAO is a project operating in this mode. It claims to be a collective of “DeFi leaders, early NFT collectors and digital artists”. They are raising funds to purchase high-value NFTs, which are owned by DAO members or holders. Co-pay and own tokens.
Similar to this is FlamingoDAO, which “aims to explore emerging investment opportunities based on blockchain-based proprietary assets”, enabling members to formulate and implement NFT-focused investment strategies. To further promote the NFT’s position on DeFi, the agreement also allows members to vote on the fractional shares held by their NFT to lend them or use them as collateral for other DeFi platforms.
What’s New?
Many must be expecting the new investment DAO launch on IdavollDAO, as everything in crypto seems to evolve around investments and profit taking. However, a smaller step is taken for the NFT integration. Distinct NFTs have been minted and will be awarded to IdavollDAO’s most accomplished DAOers.
