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What if I ask you to share your bank account with an individual whom you never met in person? Or let’s say sharing the account with a person whose identity and real name are not known to you?
Well, if your answer is no, you are not yet aware of the power of a Decentralized Autonomous Organization (DAO).DAO development is a modern-age concept where individuals enter a contract with each other to attain a coordinated goal.
Why the hype about DAO?
As per the recent data published by CoinMarketCap, Bitcoin, a popular DAO governance token, gained a market cap of $432,929,325,237 followed by Ethereum with $181,480,614,445.
DAO blockchain stands out from traditional business models majorly in two ways:
- DAOs tend to be completely online and automated where members don’t have to interact in person.
- In DAO smart contract system, every action takes place with particular rules and actions powered by blockchain technology. Therefore, the record of digital data is stored securely and permanently without any control of the centralized body while acting as a ledger of online digital transactions.
Market leaders and customers trust DAO structure crypto because it ensures complete transparency and is public, which indicates no one holds the authority to edit the rules without other members noticing it. As of now, the major applications of DAO include investment, charity, fundraising, borrowing, or buying NFTs, everything without the involvement of any intermediaries.
Explore more about detailed reasons why modern businesses must invest in DAO assets
What are the different types of DAO?
Based on the technology, structure, and modus operandi, DAOs can be classified into eight major types:
1. Unifi Protocol DAO
Launched in the year 2018, Unifi Protocol DAO (UNFI) has successfully laid the foundation for a completely sustainable blockchain economy. With a market cap of $26,278,015, UNFI is a bunch of decentralized, non-custodial, interoperable, and multi-chain smart contracts that offer building blocks for the development lifecycle.
UNFI token holders get special access to grab UNFI rewards while delegating and staking to Community Council Representatives. Representatives and their communities throughout numerous blockchains form the Unifi Global Governance Model backed by UNFI. This DAO protocol is crafted around a decentralized autonomous organization (DAO) which is totally governed via the decentralized governance token.
Features of Unifi protocol DAO:
- A multi-chain and non-custodial decentralized swap protocol.
- Support for liquidity pooling, a fee-sharing governance token, lending platform, loyalty rewards token, and cross-chain swap interoperability.
- Adding more value to the blockchain, UNFI enables developers to develop products around smart contract-based building blocks of the protocol.
- UNFI users experience authentic access to Proposals and Referendums for voting and proposing Unifi governance actions.
Notable examples of Unifi protocol DAO:
- MakerDAO
- Uniswap
- Yearn Finance
2. Collector DAO
Another notable type that has gained momentum in the DAO blockchain development landscape lately is Collector DAO.
While teaming up and with proper collaboration, digital collectors can now buy NFTs that were not affordable earlier and are risky for an individual to purchase.
It is to the credits of Collector DAOs!
The prime emphasis of collector DAO is to collect funds so that the community enjoys the ownership of blue-chip NFT and numerous other digital collectibles. Collector DAOs are similar to NFT DAOs which means artists utilizing NFT tokens for creating art usually count on collector DAOs for establishing their ownership of an art piece.
Notable examples of Collector DAO:
- Flamingo
- PleasrDAO
- ConstitutionDAO
3. Philanthropy DAO
With the primary focus on supporting social responsibility initiatives, Philanthropy DAO is amongst the less common decentralized autonomous organization examples in the market. This is achieved through a shared purpose of leaving a long-term impact on the Web3 community.
Big Green DAO, the very first non-profit DAO crafted for philanthropy purposes succeeded in setting an exceptional precedent for the future of social responsibility in web3.
Notable examples of Philanthropy DAO:
- UkraineDAO
- Big Green DAO
4. Investment DAO
In the entire DAO platform development ecosystem, Investment DAOs are most popular amongst crypto-rich buyers who collaborate to make investments and back startups depending on DAO-based governance. Investment DAOs raise and invest capital into assets while giving the users the liberty to decide when and where to invest the funds in diverse areas including vehicles, real estate, etc.
Unlike the traditional model where the power is held in the hands of hedge funds, managers of VC funds, and other small groups, investment DAOs allow anyone with governance tokens to make investment-related decisions.
A notable example of Investment DAO:
● MetaCartel Ventures
5. Grant DAO
Grant DAOs are built for fostering and funding new ventures and emerge as a philanthropic arm of larger projects within the system. They accelerate non-profit donations and deploy capital assets throughout the web3 ecosystem. In a Grant DAO, the community puts in monies to the grant pool while voting on funds allocation and distribution decisions.
A notable example of Grant DAO:
● Aave Protocol
6. Service DAO
Unlike the traditional business systems, service DAOs tend to have exceptional capabilities that not only assist businesses but ensure an exceptional user experience as well. Service DAOs ensure contributors enjoy complete and direct ownership of the organization with an open contribution culture. So, everyone has the authority to join and contribute. Moreover, users can expect better insights into challenges they are trying to solve followed by minimized earnings volatility for contributors.
7. Social DAO
Just like Twitter and Facebook transformed Web2, Social DAOs hold the ability to transform Web3 completely. The prime focus of Social DAO is to create a central network that unites like-minded people. Individuals get the liberty to share their common interests and everyone’s opinion is heard.
Notable examples of Social DAO:
- Seed Club
- FWB
- BAYC
- Cabin DAO
- Bright Moments DAO
- Krause House
8. Media DAO
Unlike the traditional approach where content is generated with a central agenda and further influenced with the help of advertisers, Media DAOs give the freedom to product owners of content to make contributions without the involvement of advertisers for the native token as a reward. Members of Media DAO get to earn a piece of the decentralized organization’s profit.
A notable example of Media DAO:
● Mirror
Read more about the real-life use cases of DAO here
How much does it cost to develop DAO?
When it comes to the cost, no DAO development company has a particular figure to offer. The reason is that the overall costs are totally based on the features or modules you need in your DAO ecosystem. Let’s take a look at a simple yet real-life example.
Moreover, it also depends on the business operations and requirements that one has from the DAO. Choosing the DAO development services that perfectly fit the business model will thereby decide the overall cost of developing DAO.
Develop your own DAO at economic prices with Antier
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Modern-age businesses and market leaders are already harnessing the power of decentralized autonomous organization development and experiencing complete transparency, decentralization, and enhanced security while winning users’ trust in the long run. People will fetch new and unconventional methods for earning passive income backed by the DAO technology. DAO will no longer remain a choice but will become a necessity in the years to come for enterprises and wide industry verticals.
Still not a part of the DAO revolution? Partner with Antier, a trusted leader in the DAO ecosystem. Backed by decades of experience in the digital world and exposure to cutting-edge blockchain technologies, platforms, frameworks, and methodologies, Antier has turned out to be the leading DAO development company with a global clientele.
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