Back in the summer, the ‘crypto fans’ group pooled their money for collectively making a seven-figure investment. They secretly bought the sole existing copy of the album named ‘Once Upon a Time in Shaolin’ through Wu-Tang Clan from the amount of $4 million.
So, after Wednesday this organization was known as Pleasure DAO which came further as the buyer. However, the announcement was a surprise for the crypto community.
Pleasure DAO is not new to the world but it is a specific collectible and has had a portfolio full of multimillion-dollar assets.
An internet community with a shared bank account
When it is about all shapes and structures, DAOs fit in all. However, there would be a simply ‘a DAO is an internet community which holding a shared bank account’.
There is a group of few people who come together to form a chat group, and later they decide to drag money together. (typically ) utilizing an Ethereum wallet.
There are various DAOs who fall into normal buckets however they try to handle open-source, blockchain-based projects together and the ones that make investments.
Types of DAOs
The crucial point is to understand that DAO is a broad term that contains a huge number of variant types of groups and businesses.
Below are the mentioned examples of well-known DAOs -
- The HerStory DAO collects and funds projects through Black women and non-binary artists.
- The PleasrDAO collects several NFTs and Invests in other assets.
- The Friends with Benefits DAO is the latest social club which you pay while entering.
- The Komorebi Collective DAO funds women and non-binary crypto founders.
- The MetaCartel Venture DAO is a for-profit that invests in early-stage decentralized applications.
How DAOs operate?
There are most of the DAOs which are dependent upon blockchain technology and smart contracts, are a bunch of code that runs on the blockchain. In the case of DAOs, blockchain works as back support while keeping the norms and structure of each on-chain.
DROs are decentralized, which basically doesn’t govern by one entity or person. The norms and governance of each DAO are coded in smart contracts on the blockchain and have never been changed unless voted upon by the DAOs members.
And so, members of each DAOs can collectively vote on anything whether it is any decision. Here transparency is the key aspect of DAOs.
In order to obtain voting power or membership in a DAO, you are required to buy governance tokens, which are cryptocurrencies that are merged to a particular project. By carrying these tokens, members will be able to own equity in the DAO and assist in shaping the DAOs future. Apart from voting powers, members can too work for their DAO where there are numerous internal jobs, which involve positions in token distribution and treasury management.
Is there any Project that adopted the DAO mechanism?
If you are looking for a project that is based on the DAO mechanism then RICHMINT DAO is here, it is a project by RICHMINT DIGITECH SERVICES OÜ, the project is focused on encouraging the responsible investment initiative. The system will improve the ESG investment and will encourage companies to put more effort towards the betterment of their ESG rating and performance.
The company is also trying to help businesses adopt renewable energy, waste management, reduce carbon footprint and then tackle social issues and make business operations hassle-free. To know more, visit the official website and check the whitepaper.