Decentralized autonomous organizations or what Silicon Valley is calling DAOs, are the next evolutionary step in finance or should I say, decentralized finance.
This is because, unlike traditional banking organizations, these DAOs are set on becoming the first organizations to be wholly run by a community—that is, no central organization running and enforcing the rules.
How can a financial organization be run solely by a community? Well, it is much more plausible and within the realms of possibility than you might think. This is because DAOs are designed specifically to be run by the community that uses them. In essence, a DAO is run by a series of community governance laws and a form of democracy when it comes to enacting or changing new laws.
Because of this form of democracy, where the community leads the trajectory for the DAO—users can rest well knowing that their funds, their creative works, their efforts into this software project are protected against being seized by government or oversight entities.
But not all DAOs are created equally, and some are trustworthy projects with real-world potential, while others play on their user’s naivete and fall into the category of “Ponzi schemes”.
Below, we will teach you about the most reliable, and trustworthy DAOs to look into—hopefully, you will leave a DAO-believer.
Top DAOs in 2022
As not all DAOs are created the same, as a crypto enthusiast you have to learn how to gauge whether a DAO is trustworthy or not. There are several tips you can utilize to keep your portfolio clean and free of any fishy behavior from online companies seeking to make a quick dollar. With that being said, research is your best friend when it comes to separating the gold mines from the false gold.
And these are some of the best performing DAOs with the most potential. Just keep in mind, this is not financial advice, rather this is meant for purely research purposes. Go out into the digital world and explore some of these DAOs changing the world from the comfort of your own home, on your own time.
You will be amazed by what you find.
1. BitDao
Helming from industry pioneers, Peter Thiel and Alan Howard this DAO holds more than $2.5 billion in its treasury, as well as a special agreement between it and ByBit, to move 0.025% of its total trading volume to the DAO. This commitment equals roughly $1 billion in additional revenue to BitDao. Needless to say, this is one DAO that has its finances organized and backed up by reputable exchanges.
BitDAO contributor and spokesperson Kevin Rose elaborated on BitDao’s features and future,
“A priority for the BitDAO community is to create the tooling to enable DAO treasury participation in staking, lending. BitDAO is also building an ecosystem of autonomous entities (AEs) that are funded in part by the BitDAO treasury and bring together some of the best partners to help develop Web3 across art, entertainment, finance, and technology and more.”
2. Decentraland
The homeowners association of the future, or a group of community stakeholders that are building out the largest virtual real estate holdings in the world. As of now, Decentraland owns more than 90,000 parcels of virtual land. Now, this might not seem like a lot when this translates to merely 9 square miles in the physical world, but when you add to the mix the fact that Decentraland just sold a piece of their virtual pie for $2.34 million to Metaverse group, Tokens.com—then they might just be on to something.
The community works like this, it is a hybrid version of a homeowners association and a city planning committee. Where votes do not go to elected representatives, rather they are based on much land a single individual or organization owns. Meaning, the more virtual land you own, the more voting rights you have. And vice versa for those who only own small portions of Decentraland.
Will this lead to land barons in the virtual world? Or will this system of sharing and providing the community with governance rights lead to a more fair and equitable metaverse?
3. LexDAO
Meet the future of attorneys and the work they will provide. All brought to you by the magic of coding and programming. This tech-law organization (they have specifically stated they are not a law firm nor do they offer legal advice) is composed of both attorneys and engineers. Combining the best of both worlds, LexDao offers legal services such as LexLocker, their very own escrow service where clients can deposit their funds to hold while they wait on the delivery of services or goods.
This brilliant group of attorneys/engineers also designed an arbitration system where decisions are rendered by a multi-sig panel of LexDao legal engineers. Thus fast streaming the typically long and arduous arbitration process.
All in all, these DAOs will touch every corner of modern-day life. And if our predictions are accurate, this might just be the beginning of a new era defined by the DAO. Farewell banks, institutions, and oversight mongers, there is a new sheriff in town, and his name is DAO and he is here to stay.
