Everyone should know what non-fungible tokens are by now, but what are DAOs? Decentralized Autonomous Organizations are online communities that are made with blockchain technology (pronounce it “da-ow”). These groups bring together people with similar interests who work together toward a common goal. They are completely run by the members themselves through community governance. DAOs are not like a book club. Instead, they are more like venture capital funds, except that members pool their money to make a common fund.
Members can join the club by investing a certain amount of cryptocurrency or by buying the DAO’s branded digital token, whose value changes like stocks. Votes and stakeholder status are based on how much each shareholder has invested or how many tokens they have. In addition to a financial scorecard, DAOs can also use a reputation-based scoring system that weighs a user’s vote based on their correspondence and involvement. Those who have tokens can vote on which projects get money by making suggestions.
The RedDAO, a group of people who care about the digital fashion ecosystem, bought the Doge Crown NFT by Dolce & Gabbana for USD$1.27 million in Ethereum (ETH) to keep and keep in their treasury. DAOs are the clubs that hold the keys to making decisions together using a smart contract. When certain criteria are met, an action is triggered, and NFTs can be used as a membership key. Instead of just one CEO or board member making decisions, all stakeholders share that power, and the process is completely open, with votes and voting histories available to the public. People think that DAOs will change the way communities grow and change in the future because they let people work together on projects they care about and give them ownership stakes and the power to make decisions.
The Crypto Enthusiasts
LinksDAO is a group of golf fans and cryptocurrency investors who have joined forces to buy a golf course. They want to change the way modern golf and leisure clubs work. The DAO is on track to buy a network of international golf courses and create new experiences in the Metaverse with the money it made from selling NFT memberships, which gave buyers voting rights, special benefits, and a spot in its first physical club.
Another Web3 private members club in Hong Kong is also in the works. PunkWhaleClub will be a community-owned, decentralized private club, not to be confused with an accounting business. Unlike most club memberships, there are no applications or yearly fees. To use the clubhouse’s amenities, members must buy its NFTs, and the people who own them will decide where the clubhouse will be. The club will have a Japanese omakase restaurant, a cocktail bar, soundproof conference rooms that are open 24/7, and insulated cigar lounges where food and drinks can be bought with cash or cryptocurrency.
Access and benefits are no longer the only reasons to join a club. Now, everyone must have a stake in the club. In this age of decentralization, the idea of a social club that is totally independent and open to everyone helps it grow by introducing a new type of investment. DAOs are a new way for people to work together toward a common goal and make a new society based on what people really want.
Web3 changes the idea of private memberships for specialized communities by using token-gating entrance as part of the DAO approach. Entry and access are only given to people who have enough tokens or who are actively using the network. This keeps out low-quality members. As a new cultural class of crypto elites emerges, NFTs and DAO memberships could become sought-after status symbols, just like any expensive good. It won’t be surprising when Anna Delvey starts making her next private members club on the blockchain.