The 8 Most Interesting DAOs of 2022
Decentralized autonomous organizations, or DAOs, are a compelling new concept from Web3.
DAOs allow people to collectively pool money to use on a common goal: buying property, conserving the environment, or even purchasing the US Constitution. These decentralized organizations are governed without any central authority, meaning anyone who contributes to the DAO has a say.
What Are DAOs?
DAOs operate using smart contracts, contracts built on the blockchain with predetermined criteria agreed on by both parties. Once the requirements are met, the contract will execute.
Just like paper contracts control corporations, smart contracts control DAOs. Token holders in the DAO can influence future operations or governance protocols based on majority rule.
A DAO allows regular people to participate in potentially world-changing decisions. DAOs are built on open-source blockchains to improve transparency, meaning anyone can view the underlying code. Blockchain technology also keeps all financial records so anyone can audit a DAO’s treasury.
In this article, we’ve compiled a list of some of the most exciting projects. Some are no longer active but played a significant role in making DAOs what they are today. Others are paving the road for more widespread adoption and funding change in global issues.
The 8 Most Interesting DAOs of 2022
Uniswap is a leading decentralized exchange (DEX) built on the Ethereum blockchain where users can exchange cryptocurrency without going through a third party such as Binance or Coinbase.
Anyone can join this DAO by holding Uniswap’s native token UNI. UNI is a governance token that allows owners to vote on new developments or updates. In the past, UNI holders have decided how new tokens should be distributed to the community and developers. A few profit-driven individuals would have made this decision on a centralized exchange instead of thousands of active users.
2. Decentraland DAO
The Decentraland DAO controls essential smart contracts and assets that govern Decentraland.
They own the game’s rules: How users buy land, create estates, and buy and sell items. The DAO also controls a significant amount of the in-game currency MANA. This allows them to be fully autonomous and fund certain operations or initiatives in Decentraland.
The community has complete control over the game by voting on Decentraland’s governance interface Aragon. The users propose and vote on LAND auctions, policy updates, and which NFTs are allowed within the ecosystem. The Decentraland DAO is the first foray into a fully decentralized metaverse.
3. Friends With Benefits DAO
Friends With Benefits DAO is an exciting project for people looking to develop relationships with like-minded decentralized enthusiasts. Friends With Benefits is a worldwide community of Web3 creators, thinkers, and builders who converse digitally and in real life.
Instead of attracting investors with excess capital, FWB is more focused on cultivating a community of digital workers who can contribute time and energy. Users can enjoy online or in-person meetups with other token holders. Currently, owning 5 FWB tokens gets you access to their cities initiative, creating FWB hubs in New York, Los Angeles, and London.
MakerDAO was created to develop more intelligent money for global commerce. The currency DAI is a stablecoin pegged to the US dollar. DAI helps level out the playing field in online business by allowing entities to transact across borders without worrying about exchange rates or fees.
People can buy MKR tokens and join MakerDAO to help make governance decisions. MKR tokens are locked up in a voting contract, with voting power based on how much locked MKR is in the contract.
ConstitutionDAO started with the goal of buying a rare copy of the US Constitution.
Unfortunately, the DAO never succeeded in purchasing it. However, they did succeed in taking DAOs to the masses. They revealed the community’s true power and the speed at which DAOs can raise money for a cause after raising $42 million in 7 days.
CostitutionDAO was many people’s introduction to DAOs, and the project educated thousands about the Web3 space. Since then, ConstitutionDAO has inspired many other projects, such as Krause House, attempting to buy an NBA franchise.
6. Mirror DAO
Mirror DAO has the goal of reinventing publishing for Web3. Publishers can launch crowdfunds, NFTs, and distribute proceeds to contributors.
Writers benefit from this model through decentralization, allowing them to get paid on their terms. They also get the added benefit of security through decentralization. Platforms such as Medium control traditionally published content online, while on Mirror, writers have the authority.
One interesting note about Mirror is their token race, which is how new members join the platform. The token race or write race is a weekly showdown between users looking to join Mirror DAO. As the competition commences, members vote on who they think the best writers are, and the top 10 writers get awarded one $WRITE token. The competitors can then redeem this token for membership on the platform.
7. EarthFund DAO
EarthFund DAO came about to tackle climate change. They operate by pooling money and voting on what projects get the funding. Currently, they have $2.4 million under management with three proposals. Some of their causes are mental health and carbon removal.
Unlike many other DAOs, EarthFund offers a financial incentive to participate in the community. They measure your impact and then redistribute funds to reward your hard work. It’s worth mentioning that there are a few other DAOs focused on climate change, such as KlimaDAO and ClimateDAO.
UkraineDAO is a DAO focused on raising money for Ukraine during the armed conflict with Russia. They have raised over $7 million and distributed it to the Ukrainian government, people, and army. This is one of the first successful applications of DAOs supporting war relief and evacuation efforts.
They held an auction for an NFT of the Ukrainian flag, which sold for $6.75 million. They continue to support Ukraine by attempting to arm them with vehicles and supplies.
Into the Future
DAOs are shaping the future of Web3 and could be the solution to many of today’s problems. Being decentralized means that the power is in the hands of the people, leading to a more democratized society.
This material is provided for informational and educational purposes only. It is not intended to investment advice nor should it form the basis of an investment decision.