If you are already into the world of cryptocurrencies and web3, you probably heard in some conversation or another the term Decentralized Autonomous Organizations (DAOs); and if you have been in Hive for a while, then you know, for sure, what I'm talking about. Nevertheless, I'll tell you what they're all about and why they transform the economy for us creators.
These little jewels are a kind of member-driven companies that make decisions collectively without bosses or hierarchies; decentralization is the term that characterizes DAOs, as it does with everything that involves blockchain technology. Well, it sounds good, doesn't it? So, generally speaking, let's talk about how to get involved in DAO projects and what are the advantages of doing so.
Get on board the DAOs train! 🚂
Like any revolutionary concept, DAOs have their detractors and their defenders; if you're reading, it's because you're one of the latter. Still, before you dive headlong into the DAO universe, here are a few tips to get you started (they helped me in the creation of my own DAO ;o)
- Research: check out DAO projects on HIVE and other blockchain platforms. Find the ones that fit your interests and values, and make sure they have an engaged community (like ours).
- Learn: study how each DAO's governance mechanisms, incentives, and smart contracts work. This way you will be able to provide input and make informed decisions (keep in mind that investing in any asset has its risks, so be well informed).
- Participate: join discussion groups and forums of the DAO you are interested in (on Discord you will find many of Hive's communities, also Twitter). Share your ideas and collaborate with other members to help the project grow.
- Invest: if you feel comfortable, (and after making sure you have completed the above steps) invest in the native DAO token to have a say in decisions and receive rewards for your contribution.
DAOs to the rescue of the creator's economy
DAO projects have a real impact on the creator's economy and I will use some examples to justify what I just told you.
According to data in a report by Observatorio Blockchain, at the beginning of 2023 the total value of DAO assets has grown by more than 50% compared to December 2022. In addition, the article mentions that project creation has increased by 6.65%. I'm sure if you google, you will find more relevant statistics that demonstrate the growth and adoption of these organizations in the blockchain space.
Now, one DAO example that is making a difference for creators is Mirror; a platform that allows writers to launch tokens and raise funds for their projects. Thanks to Mirror, writers can get financial support directly from their followers and maintain creative control of their works.
There is also Foundation, an NFT marketplace that functions as a DAO. Artists can sell their work and collectors are involved in the decision-making and future of the marketplace. This creates a closer relationship between artists and collectors, ensuring a fairer distribution of income.
Last but not least, of course, is Hive, which we already know how it has transformed the lives of many of us, and in other cases our communities.
Why should I care about what you say?
Let's see, we already know, because we are living it, that DAOs (as utopian as it may seem) promote a more humanistic approach in the digital realm. How so? Read on:
- Full autonomy: DAOs give creators full control over their work and the chance to make decisions as a group. Goodbye, intermediaries! Thus, each creator has more independence than ever before.
- Fair money for all: thanks to the decentralized structure of DAOs and these smart contracts that are the best, the distribution of profits is much more equitable. Thus, creators receive what they truly deserve.
- Shared resources: being a member of a DAO means having access to common resources and funding. In this way, creators can get involved in projects and collaborations they would never have dreamed of achieving before.
So...
After reading all this (which I hope didn't bore you) do you think DAOs will lead us to the paradise of creativity or will they be the prelude to chaos and misgovernance in the art world and the creator's economy.
