A decentralized autonomous organization (DAO) is an organization represented by rules encoded as a computer program, which is transparent, controlled by the organization members.
DAO is governed entirely by its members who collectively make crucial decisions about the future of a particular project, such as technical upgrades and treasury allocation. The part where it attracts the most is its alignment of incentives. It is in the best interest of the community members to be outspoken about their voting decisions and support only those decisions that will benefit the protocol itself.
It‘s important to note that the DAO landscape in 2021 looked impressive and there was a huge trend to dive into the decentralized ecosystem. Popular projects like MakerDAO, Uniswap, Aave, etc. were the key players in the market. Till now, the popularity of the DAO projects is growing due to the following reasons:
The DAOs are based on the decentralized blockchain network, so decisions cannot be changed unless all or majority of members of DAO don’t agree that’s why it is a fully democratic system.
Everyone is free to join the project.
DAO-based DeFi offers permissionless, transparent financial service to everyone without restrictions.
The major dApps are governed by DAOs.
In this article, let’s discuss the most potential DAOs of 2022!
MonkeDAO: MonkeDAO is a curated community of monkes (monkeys). It's the first DAO to operate a node on the Solana blockchain! It generates value for its members and the Solana community as a whole while being stewards of the Solana ecosystem.
PizzaDAO: PizzaDAO is a community of digital artists creating pizza NFTs. Last year, PizzaDAO gave away over $500,000 worth of free pizza to throw the World's Biggest Pizza Party funded through the Rare Pizzas NFTs project. Rare Pizzas raised funds through the sale of collectible digital art contributed by over 314 artists.
IBC DAO: IBC DAO is one such community that is striving to reduce entry barriers for players and provide a consistent income. By following a sub DAO approach, IBC gaming guilds empower the P2E economy by supporting early-stage projects.
Flamingo DAO: Flamingo is an NFT-focused DAO that aims to explore emerging investment opportunities for ownable, blockchain-based assets. It aims to develop a strong foothold in this emerging ecosystem, bringing together the "hive mind" of a DAO to the world of NFTs.
Friends with Benefits DAO: Friends with Benefits DAO (FWB) is a group of cultural creators and maintainers using Web3 tools to build community and foster creative agency.
Curve DAO: Curve DAO is the governance token for CURVE Finance which is a decentralized exchange for stablecoins. It uses Automated Market Maker (AMM) for managing liquidity. Its primary goal is to swap assets that have the same value which can be useful for the DeFi ecosystem.
Merit Circle: Merit Circle crypto protocol is a decentralized autonomous organization (DAO) focused on facilitating the play-to-earn (P2E) gaming economy. Merit Circle seeks to make P2E gaming more of a reality for more people, transforming gaming from a leisurely activity to a stream of generating revenue.
Yield Guild Games: Yield Guild Games (YGG) is a gaming guild focused on blockchain play-to-earn games. It's a community that invests in NFT assets and connects blockchain gamers around the world. Their goal is to build a network of players and investors who help each other get started and grow in the NFT gaming space.
GnosisDAO: GnosisDAO is a collective that uses Gnosis products to transparently guide decisions on the development, support, and governance of its token ecosystem. The GnosisDAO governance process is primarily conducted using the GnosisDAO category on the Gnosis Forum. For a Gnosis Improvement Proposal (GIP) to be accepted, it must successfully pass through three phases.
Aragon DAO: Aragon is an open-source software used to maintain and create decentralized autonomous organizations (DAOs) on the Ethereum blockchain. If you're unfamiliar, a DAO is a software running on a blockchain that offers users a built-in model for the collective management of its code.
DuckDAO: DuckDAO is a decentralized incubator that helps promising projects achieve their full potential by leveraging the investment power and buzz-making potential of our community. They aim to democratize access to investment opportunities that were previously available only to well-heeled investors and venture funds, opening up the closed ecosystem of early-stage crypto project investments to everybody.
Conclusion
The DAO operated in the murky territory about whether or not it was selling securities, as well. Further, there were long-standing issues regarding the way that the DAO would function in the real world. Investors and contractors alike needed to convert ETH into fiat currencies, and this could have impacted the value of ether.