5 CATEGORIES OF DAO YOU NEED TO KNOW

Pictorial representation of a DAO

DAOs are changing the narrative of organizations and communities. The number of participants has grown exponentially from 13,000 to over 1 million people and we are still expecting more people to come onboard.

With respect to increased participation, are different kinds being created, it’s only proper you are not left in the dark about this movement. In this article I will be looking at some categories of DAOs and in real life examples of it. If you don’t have prior knowledge about DAOs check out this beginner’s article I wrote last week here

Categories of DAO

  1. Media DAO

Media DAOs

Media DAOs are designed to change how content is being created,distributed and published. Creators are rewarded for content provided, there’s no censorship of content, and everyone has the equal right of publishing.

Bankless DAO is an example of a media DAO. Just as the name implies, it’s in full support of decentralization and what it has to offer. It was launched officially in 2016 by airdropping 35,000 tokens to its users.

| Airdrop is a marketing strategy adopted by crypto projects to give free tokens to users for doing basic tasks.

The mission of Bankless is to onboard 1 billion people into crypto by providing necessary information to educate newbies in the space and make web 3 popular.

“Bank Token” is Bankless DAO governance token,obtained by participating in the activities and contributing to the DAO.

Quite a thoughtful way to own its governance tokens as there are no malicious ways of acquiring it. It’s only gotten through proof of participation.

To learn more about Bankless DAO and how you can be a part of what they are building,you can visit their website.

Social DAOs

This is a type of DAO created to bring like minded people together such as creatives,developers, artists e.t.c. with the aim to build great projects or stuff together. It’s a whole new level when you get to connect with creatives like you and share a common interest with building.

Developer DAO is a group of developers who are building in web 3, an open space for new developers to come on board and get familiar with the technology.

They are actively building new tools and applications that are useful to the adoption of web 3 worldwide. What a beautiful way to connect and build an organization without hassles.

They have created different systems for education like D_D academy for coders to have a head start on how to build on open source technology like Blockchain.

Protocol DAOs

Protocol DAOs are DAOs developed to manage a decentralized protocol which can be a decentralized app(Dapps), decentralized social networks. Major decentralized exchanges have a DAO in place to make changes and manage the project after the development team has created the application.

Uniswap DAO: The largest decentralized exchange Uniswap, launched its DAO in 2018 by distributing UNI tokens to consumers who have interacted with the protocol beforehand. Its community members are now responsible for making decisions on the protocol and managing the project. The holders of UNI tokens have control over the community treasury, protocol fees, liquidity provider tokens and others.

Philanthropy DAOs

Just like what the real life meaning of philanthropy means, it’s the same here too in web 3. The major difference is utilizing blockchain technology and smart contracts to create well defined protocols that take care of money,donations to different causes.

It is aimed at contributing to social responsibility and environmental concerns.

Big GreenDAO is an application of what philanthropist DAOs do. A non-profit organization founded in 2011 with the mission of improving lives by growing food crops.

The community of the Big GreenDAO are made up of technologists, people working in the food industry which means they are quite knowledgeable about food and growth.

They are also involved in donations to countries experiencing food scarcity.

Investments DAOs

This is a type of DAO that invests in a project as a group. Similar to a regular venture capitalist firm goal but adopts decentralization. They invest in any kind of project and are not limited to web 3.

Investment DAOs are changing how projects in web 3 and beyond are being funded. They raise funds through the sale of the DAO token and the members decide on how the money will be spent.

Bit DAO is a DAO that collates its members’ capital and invests in crypto projects. The vision of Bit DAO is a decentralized token economy and open finance available for everyone. The DAO is governed by the bit token holders.

They don’t just invest,they are also concerned about the success of the project. The profit gotten from investing is shared amongst the members.

To participate in what Bit DAO is doing, you will need to purchase its token and be an active participant.

Conclusion

It’s just a matter of time before DAOs become the mode of governance and organizations. I am positive the future is bullish on this technology and there would be less centralized governance and institutions.

Hope you learned something new today.

Do well to drop 10 or 50 claps before leaving.

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