Home
News
- 1 We will be looking at what DAOs are and how they work. How its development has impacted blockchain positively.
- 2 In this article, we are looking at the innovations and trends that have come with DAOs. how this innovation has improved the services provided by DAOs.
DAOs are taking over cryptocurrency like a storm. Its decentralized system and how the organization’s governance is run on blockchain have propelled its name. We will be looking at the innovation that DAOs have undergone. We will be discussing these innovations and how they have made the cryptocurrency market a better place.
Introduction to DAOs
A lot has been made in cryptocurrencies, and innovations to make cryptocurrencies a better place are continuing. Decentralized Autonomous Organization technology is one of the advancements that emerged through blockchain technology. DAOs are organizations with members who share the same objective. A DAO is a decentralized authority that creates rules for its users through smart contract technology.
Since it’s a decentralized system, it allows its users to vote through tokens. This technology allows each and every user to take part in decision-making. Unlike traditional systems in which hierarchy is utilized in making decisions, DAO does not allow hierarchy systems. Decisions are made by its users, determining the number of tokens each member has.
Since the formation of DAOs, developments have been made to enhance their decentralized systems. In this article, we will be providing emerging trends that DAO developers have made since the innovation of DAOs. We will be tackling a number of them. If you are looking for innovations that have been made in DAOs, then you are in the right place.
Trends and Innovations in DAOs
In this part, we are going to look at what steps the DAOs have taken that have had a positive impact.
The reason behind DAO’s innovation was to create a decentralized government in cryptocurrencies. Users here won’t be depending on hierarchy for rules and regulations to be made; in a hierarchy system, rules made do not include every member. The first innovation that DAOs made was providing liquidity for democracy. Here, every member had a say in making laws. Liquid democracy is a democracy that needs decisions from every participant who is involved in that system. DAO’s system decisions are made through voting. These votes are made by its members. This innovation was introduced in DAOs to give a sense of belonging to its users, indicating that no one owns the organization but rather everyone is supposed to take part in making changes.
Another innovation that DAOs have created is interaction between their members. Since it’s a decentralized system, members can come together to discuss a certain project and innovate it further. DAO members are enabled to interact without middlemen being involved in the process. This enables its members to earn trust and, most of all, transparency. Interactions with members are made online through podcasts, video calls, etc. Members coming together will create a visionary mission that will result in improving the environment for DOAs. This interaction is important among its members since they will have time to discuss ideas that come to them. This interaction gives each member an opportunity to give their opinion on problems that challenge the DAOs, and most importantly, it enables them to reach a certain goal.
Combining the DAO authority system with NFTs ensures secured ownership of the NFT user’s digital art. This gives you direct membership in the DAO organization, which means you can vote on the decisions using your NFT token. This allows transparency, honesty, and trust in the organization. This gives assurance to its users that the digital arts are not owned by a centralized authority but rather by you. Therefore, DAOs are essential in NFTs since they give NFT owners the ability to control their assets and have a say on how to use them.
Innovation in investments has also been enabled by DAO protocols. This protocol offers lending platforms where users can ask for loans and do not need to meet requirements for loans to be acquired. Its decentralized nature gives you ownership and control over your assets. For instance, the DAO system in DeFi has enabled a number of exchanges where users can ask for financial support. For instance, DAO members with the Uniswap DeFi exchange app can acquire loans. Members can acquire loans through cryptocurrencies that can generate income. Another platform is AAVE. This innovation allows members to earn without having capital in their liquidity pool.
Another part of cryptocurrency that DAOs focused on was the metaverse. Metaverse is a crypto space that uses virtual space. The introduction of DAO in the metaverse was to provide better control over the assets that its users earn. For instance, NFT’s games enable its users to earn income. The DAOs aid their users in earning massively through yield farming on different blockchains. DAOs give users the opportunity to earn from different blockchains without being controlled by a centralized authority due to their decentralized nature.
Conclusion
This trend and innovation that have occurred in cryptocurrencies with the help of DAOs have really improved the blockchain system. For instance, who knew that members of DAOs could make their own rules and, through the use of smart contract technology, they would be approved? The DAO organization has brought everyone into an equal space. You don’t have authority over any member, unlike traditional governments where the least ranked members can’t give opinions or even ideas.
A Decentralized Autonomous Organization has made everyone useful; it has created trust between unknown members where users with the same goals bring ideas and discuss them to better the goal. Decision-making was initially based on members with higher ranks, but with DAOs, every member is required to make a decision that will propel the organization to provide better service.
I believe that with DAO trends and innovation, we will be in a better place financially and in governance. We will feel accepted; we won’t feel rules being made by the higher-ranked personnel. These innovations also help acquire financial stability through loans from different exchanges in Decentralized Finance. For example, I don’t need to have cryptocurrencies in my account to acquire loans, I can also do my trading with my fiat money, and investors can lend their assets and later earn through staking and transactions.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
