Many experts have labeled 2023 as the year of DAOs, and I fully agree with that. Decentralized autonomous organizations change the blockchain product market, making it accessible and independent of external and internal circumstances. FTX, SVB, and SilverGate Bank collapses reveal that “legitimate” centralized companies can engage in undercover activities, like money laundering or fraudulent transactions. Eventually, the exposure is followed by a crisis even the big sharks can’t handle.
DAOs provide an alternative by distributing management processes to all token holders, rather than a specific group of people. Decisions are made by voting, and responsibility is evenly distributed among all voters. The system is completely independent, ensuring transparency of transactions. Today, DAO principles are actively used in various fields, from GameFi to art and education. George Galoyan, CEO and founder of DAO.vc, would like to highlight several sustainable trends we’ll witness in the next 5 years.
DAO and the NFT Market
The new crypto bull run gives hope for a quick recovery of the NFT market, where capitalization has already exceeded several billions. Interestingly, we are seeing some NFT marketplaces transition to a decentralized management mechanism. Artists are creating their own DAOs, where each participant can buy, sell or exchange tokens under special conditions. The funds from NFT sales may partially be used for social projects, such as sponsoring talented creators. Naturally, all DAO members use project tokens to vote for one decision, or the other.
DAO and Education
At present, there are at least 15 DAOs operating in the education sector. Members of these organizations exchange educational materials on a variety of subjects, from economics to art, and earn tokens for their contributions. These tokens can be used for payments or for voting on matters such as the organization’s expansion, the addition of new subjects, or increases in teachers’ salaries. I believe this represents an important first step in reforming the global education system, and wouldn’t be surprised to see DAO universities emerge in the future as alternatives to traditional institutions.
DAO and GameFi
GameFi and DAOs represent another sector poised for mutual significant growth. Play-to-Earn game developers already use decentralized management to build robust gaming ecosystems and create seamless gaming environments. By forming a DAO, developers can work together to enable players to exchange or sell maps, avatars, and other in-game items with ease. This creates a barrier-free environment for gamers and enhances the overall utility of gaming tokens.
I’m confident that DAOs will likewise be actively established in the real estate, payment services, and other areas.