Why DAO Enabled NFT Platform Development Is On The Rise
Posted By : Priyansha Singh | 18-Aug-2022
DAO-Enabled NFT Platform Development
NFTs have garnered monumental traction in a short span of time and as a result, individuals and businesses alike have started to take undivided interest in the lucrative opportunities it offers. Early adopters of non-fungible tokens are fetching millions of dollars simply from a meme, JPEG image, or video clip. With NFTs, enterprises are fearlessly selling virtual clothes and accessories and users are purchasing real estate and collectibles.
There is no doubt that these unique tokens have succeeded in skyrocketing a plethora of industry segments through digital asset tokenization while unlocking infinite opportunities for global enterprises, investors, and traders.
It is also pivotal to know that millions of NFTs are minted, created, purchased, and sold daily through various NFT marketplaces and related platforms. In fact, according to research, the revenue of the global NFT market is anticipated to cross $35 billion by the end of this year and reach the mark of $80 billion by 2025. With such promising statistics, more and more businesses and entrepreneurs are keen to dip their toes into this multi-million dollar industry.
However, NFT marketplaces are not just limited to this as it continues to evolve and reinvent themselves into a better version of the existing infrastructure. For instance, NFT platforms are now embracing the decentralized autonomous organization (DAO) model irrespective of the cardinal purpose they serve. Furthermore, DAO also helps in ending the bureaucracy and subduing its potential outcomes.
DAO-powered NFT platforms emphasize user interests and enable the distribution of the regulatory power among the users on the basis of how many native tokens of the platform or NFTs they own.
In this blog, we will discuss how DAO-enabled NFT platforms are opening new doors of possibilities and elucidate the benefits it presents on a worldwide scale. So, let’s get started.
How is DAO Connected With NFTs?
DAOs basically exist and run on a blockchain ecosystem. They are regulated through a set of rules functionally embedded in computer programs known as smart contracts. DAOs are extremely vital for ending organizational hierarchy and automating decision-making by permitting everyone to participate, vote, and contribute to DAO management.
When it comes to answering how DAOs are related to NFTs, let’s understand their functionalities in accordance with NFT platforms in a better way.
Functionality: DAOs bring trust and transparency through a distributed decision-making system. It automates the NFT platform governance, enabling users to readily decide the future and operations of the platform. Furthermore, DAOs eliminate the boundaries of the decision-making process, such as who has the power to vote (board of directors and shareholders in traditional companies) and who can propose changes or updates in the platform’s governance.
Rather than making users or stakeholders trust a manager or a CEO, DAOs strive to distribute the controlling power of an organization to the users or members who are running the NFT platform. For instance, if five members set up an organization together, they can cast a vote as well as propose any necessary changes to the governance.
Understanding DAO-Enabled NFT Platforms: DAO-enabled NFT platforms enable users to make decisions related to any upcoming changes where DAO is the core facet of the NFT marketplace or platform similar to the case of user-end portals. Moreover, NFT applications powered by DAO typically inculcate gaming apps, staking platforms, and metaverse marketplaces.
There are different types of DAO-enabled NFT platforms such as:
- Protocol DAO
- Investment DAO
- Operating System DAO
- Service DAO
- Social DAO
- Collector DAO
- Media DAO
Benefits of DAO-Enabled NFT Platform Development
DAOs allow users to leverage authority for policy reviews related to content moderation, assets policy, and auctions. Since DAOs ensure autonomy and are backed by NFTs and smart contracts, it further truncates the involvement and concept of leadership throughout every NFT platform.
Nevertheless, users can unlock the potential to stake native tokens and NFTs in DApps for generating rewards. In this process, users experience comprehensive control over their owned NFTs while staking or even supplying to the liquidity pool.
- Voting Power
As compared to regular NFT platforms, DAO-enabled NFT platforms entail distinct governance models and ownership policies. When users become an element of the critical and internal decision-making process, there are three stages to be followed – proposals, total submitted votes, and results.
Therefore, DAO-enabled NFT platforms utilize the members’ votes with an equal share for making modifications to the existing policies of the platform and issuing grants in a fully transparent manner.
- Complete Decentralization
Users need not worry about the hierarchy-structured infrastructure or authority that makes crucial modifications in the platform without taking their consent into account.
On the other hand, DAO-enabled NFT platforms allow users to relish complete authority and be an integral part of important decision-making processes whilst also contributing to the respective communities.
- Stake and Earn
With NFT platforms, users get the ability and authority to earn while staking native tokens and NFTs. Subsequently, this turns out to be a win-win criterion as it benefits both users as well as the marketplace with assured liquidity at all times. This is one of the most pressing reasons why more and more users and businesses are stepping into the ecosystem of NFT platforms and decentralized governance token development.
- Review Policies
Everyone is granted access to review all the policies and rules pertaining to the NFT marketplace platform and propose any changes or modifications for the respective platform. Moreover, DAO enables users to take the opportunity to participate in related NFT marketplace events such as launches, sales, community promotions, and more.
Looking For NFT Platform Development Services For Your Project?
At Oodles Technologies, we provide end-to-end NFT development solutions to businesses across various industries such as eCommerce, real estate, media & entertainment, gaming, education, and more. As an established NFT development company, we assist entrepreneurs and established organizations to overcome complex operational challenges and harness the potential of digital asset tokenization. Over the years, we have worked on numerous projects and have successfully developed non-fungible tokens for art, music, videos, games, accessories, collectibles, and clothing, just to name a few. Our seasoned team is proficient and well-versed in next-gen technologies and blockchain networks such as Ethereum, Hyperledger, Cosmos, IPFS, Solana, and Polkadot, just to name a few. If you are looking for NFT platform development services, feel free to drop us a line. Our experts will get back to you within 24 hours.