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An organization constructed on rules written as a computer program is referred to as a decentralised autonomous organisation. DAO members effectively own the organisations because there is no central authority and no need to respond to authorities or governments.
Blockchain technology is used by DAOs to protect their data from hacking and unlawful usage. DAOs’ current legal standing is unclear. DAOs are cryptocurrency businesses that recently saw a surge in popularity.
Investors can essentially send money anywhere in the world anonymously through a DAO.
Why Did DAOs Get Made?
For the first time, we were able to conduct P2P transactions without involving a third party (banks, the government, etc.) with the introduction of Bitcoin, the first blockchain and cryptocurrency. Since then, people and developers from all around the world have been interested in the potential and reach of blockchain technology.
In the years that followed, as additional coins appeared, interest in this new, decentralised industry grew. Soon after, individuals began to understand how cryptocurrencies had the power to challenge central banks’ hegemony over the modern financial system.
This encouraged sector growth while posing a threat to the existing centralised authority.
This new decentralised system aimed to not only incorporate conventional payment methods into regular P2P transactions but also to build the entire financial system around it.
Decentralized autonomous organisations (DAO) were developed as a result to meet the needs of the users. These organisations provide them the freedom to direct their own experiences and make choices that will benefit both the organisation and the community.
Describe a DAO Token
The governance token for each DAO is a native coin. It enables the user to join the governance committee and participate in future decision-making. Several more uses for a DAO token include intra-network communications.
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Leading Autonomous Decentralized Organizations
Uniswap
The largest Decentralized Autonomous Organization in existence today is Uniswap, the most well-known decentralised cryptocurrency exchange on a global scale. In September 2020, Uniswap introduced its governance token and turned as an official DAO.
In contrast to centralised exchanges, which only have a few hundred coins, it primarily serves as one of the most active decentralised autonomous organisations on the market today, supplying thousands of tradeable crypto tokens.
If you have been a frequent user for some time, you may be eligible to apply for membership integration and governance powers. Due to its tight hold on the DeFi markets, Uniswap has experienced exponential growth in both volume and membership.
Over the past few years, Uniswap DAO has garnered attention in the cryptocurrency industry. With its popular DAO token, UNI, Uniswap currently has a market valuation of $3.6 billion.
DAO Creator
The DAO Maker wants to dominate the market for growth solutions for blockchain firms that use new cryptocurrencies. Infinity Pad (IPAD), Seascape Network (CWS), My Neighbor Alice (ALICE), and Orion Protocol are just a few of the initiatives that the organisation has been instrumental in making effective in the past year (ORN).
DAO serves as the platform’s native cryptocurrency. Users can stake it on the vaults of DAO Maker to receive a yield. The token will soon be utilised to support community governance as well. With a market capitalization of $116.3 million, the token’s current supply is around 71 million DAO.
DAO Maker is also opening up fresh cryptocurrency opportunities by making it simple to access physical assets. Since giving its members the ability to exercise governance rights, DAO Maker has branched out into new markets to trade marketable goods such as freight-shipping invoices, real estate (both commercial and agricultural), business loans, and other receivables.
Additionally, it has partnered with Centrifuge, another DeFi provider, to provide investors with more real-world assets.
BitDAO
One of the biggest autonomous decentralised organisations, BitDAO is dedicated to creating an environment with a decentralised tokenized economy. The company invests in helping other partners and projects in the DeFi sector develop and prosper. Additionally, the group supported several activities that could benefit the sector.
The project’s native coin, BIT, serves as its governance token. BIT Holders have the ability to offer a proposal and vote on any project-related decisions. This indicates that all choices are reached with proper vote and community proposal acceptance.
At the time this article was written, the price of one BIT token was $0.8, and its market capitalization was $479 million.
Aragon
Another well-known decentralised autonomous organisation that permits other platforms to debut their DAOs is Aragon. Within a DAO infrastructure, Aragon enables users to communicate with anyone, anywhere in the world. Almost 1500 decentralised autonomous organisations in Aragon exist now, each with a $350 million investment!
The Aragon DAO token, ANT, is well-liked by users. It allows consumers to choose how any project they are interested in will develop. Aragon provides one of the best DAO tokens, enabling token holders to start or join DAOs built on Aragon.
Through the Aragon Fundraising project, Aragon also assists other organizations in developing DAOs or projects of a similar nature. With a market net worth of roughly $371.38 million, ANT is soaring high in DAO tokens.
Decred
Another reputable site that deals with DAO initiatives is Decred. DCR, the platform’s native coin, functions as a cryptocurrency for governance.
The functioning mechanism of Decred combines the proof-of-work and proof-of-stake consensus models. Decred is decentralised and self-governing. Thus, there isn’t much room for drastic changes in the way policies are implemented.
Since it gives all project participants equal rights and possibilities, rather than just a select group of powerful stakeholders and miners, Decred is particularly well-liked by new DAO members. Decred has a market value of roughly $538 million.
0X
An open-source DAO called 0X operates on the Ethereum network. 0X changed its governance form to that of a DAO in April 2021, becoming 0X DAO.
Peer-to-peer transactions and services are the main focus of the DAO, which largely operates as a decentralised network. ZRX is the native currency of 0X, despite the fact that it operates on the Ethereum blockchain. ZRX’s value has, however, substantially decreased in comparison to other, more widely used crypto coins.
Dash
Another illustration of a DAO initiative that has contributed significantly to DeFi’s success is Dash Dash. It is a decentralised digital payment method with the goal of facilitating transactions more quickly than competing cryptocurrencies, notably Bitcoin. DASH serves as the DAO’s utility token.
The $623 million market capitalization shows an exponential increase in market value, and there are already about 10.27 million DASH coins in circulation. Dash is gradually moving up the DAO hierarchy thanks to significant investments in other areas and increased demand for anonymous payments.
Compound
One of the most well-known lending DAOs in the DeFi market is called Compound, which enables investors to earn interest on their assets by locking them in the platform pools. With price swings, Compound’s utility token, COMP, has established a respectable reputation among DAO tokens.
The compound has a $475 million market value as of right now. Although this currency is not among the most well-liked investment choices, it still has a lot of room for long-term expansion.
Shape DAO
The second-most valuable decentralised autonomous organisation worldwide is Curve DAO, another name on the list. It is an Ethereum blockchain-based exchange liquidity pool. Each coin of the Curve’s native currency, CRV, is worth $1.08.
Curve DAO provides swift and secure transfer of liquidity-based funds and resources around the globe. Currently, Curve has a $496 million market cap.
Aave
The largest open-sourced liquidity protocol in use today is undoubtedly Ave. It enables lending and borrowing of cryptocurrency among those involved in DeFi. While borrowers can anonymously loan out the cryptocurrency funds as collateral to conduct flash loans, lenders can receive interest on their deposited assets. At the time this story was being written, this liquidity pool was holding more than $14 billion in assets.
Aave uses blockchain technology to secure the security and preservation of sensitive data and user privacy and provides tokens to its members. Due to Aave’s acceptance of the DAO Governance module, users now have the ability to stake their tokens to cast votes and participate in governance inside the company.
Although Aave may not be the most valuable DAO, it is steadily growing and already has a respectable spot on the global ranking of the best decentralised autonomous organisations.
Conclusion
The future of online transactions and decentralised networks is bright for decentralised autonomous organisations. Most users are satisfied with the autonomy and self-governance model that the DAOs enable.
Another excellent characteristic that draws consumers to DAOs is that their tokens have the potential to appreciate in value over time-based on the project’s success.
However, analysts contend that cryptocurrencies and DAOs carry a high level of risk. Token prices are constantly changing on the crypto market. The market can quickly decline by 30% to 50% as a whole, as we just experienced when more than $500 billion vanished in a single week.
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