Being a part of a DAO is much more easy than joining a traditional board. It can be done quickly; in most cases, you just have to purchase the token. There are many DAOs in the world, and according to DeepDAO, there are over 180 in the world currently, and they’re increasing daily. In 2021, it was noted that the total amount of assists registered under DAO had massively grown by at least 4000% in the last nine months, skyrocketing from about $380 million to about $16 billion in September of that same year.
But an issue with it is finding the appropriate DAO that will fit you if you ae not sure of what you’re looking for. The way cryptocurrency enthusiasts and investors spend a lot of time searching for an excellent project should be the same way individuals invest time and effort in finding a DAO that suits their interests.
Types of DAOs
The process of joining a DAO is fascinating for individuals considering the many positive benefits that come from it. Joining a DAO is very convenient and straightforward; you just have to do your research and find one that suits your interests as an individual. Decentralized Autonomous Organizations can be focused on anything, so you have to take your time to pick the best. Here are some types of DAOs that you should look out for.
These are the type of DAOs that work with metaverse projects and systems. They’re a new type of DAO, there is a lot to learn about them as they’re developing rapidly. Many of these DAO are being created to help improve the value of a Metaverse.
These are also known as protocol DAO and are mainly used in cryptocurrency projects to manage a community.
Media DAOs focus on using multiple resources to make and post different content for the media. Media DAOs follow a set of rules placed by a particular community.
These are the most popular types of DAOs, and this type of DAO focuses mainly on commercial activities. In this type of DAO, funds are put in place by the community to establish a retail business using tokens.
Social DAOs are amongst the very first type of DAOs to be established and focus mainly on social events. It can be seen as a club where members can interact and use virtual tokens to access different features unavailable to individuals without access.
These are just a few types of DAOs that are popularly used, but it is essential to know that there is no limit to the type of DAO that can be implemented. Only purpose, imagination, and function hinder an upcoming DAO’s growth.
Multiple Factors to Look At Before Joining a DAO
Before joining a DAO, there are multiple factors that you should consider. They include some of the following:
The white paper is one of the first things you should look at before joining a DAO. It gives you a detailed analysis of the entire project, and it’ll help you have a complete idea of what you’re getting into. Before joining a DAO, ensure that you go through the white paper.
Membership Modes and Voting Systems:
Another essential factor that should be considered is the membership mode and how they vote. There are two different types of membership modes, the share-based membership mode and the token-based membership mode.
The most common between the two is the token-based membership mode, it only requires you to purchase the virtual token before gaining access to the DAO. It usually takes place on a DEX (decentralized exchange) system, and individuals can use proof of stake and proof of work to get more tokens.
The share-based membership allows individuals to join the DAO through a tribute proposal process. I’m in this mode; individuals are meant to apply by sending in a proposal and including a tribute so that they can be granted voter rights. Social and charity DAOS commonly uses this type.
As stated previously in the article, before joining a DAO, it is vital that you know the reason why you are joining a particular one and know whether it fits your interests and goals.
People instead join a DAO community that is well known online instead of one that barely has a presence. Before picking one to be a part of, you must do proper research about the DAO and its goals for the future.
Steps To Joining a DAO
Now that you have understood what a DAO is, you should look at the different types and factors before joining. Here is a step-by-step breakdown of how you can join your first DAO.
- The first step you should take is to identify the top DAO spaces, which can be done by searching for the trending ones on Twitter or other social media. Another way is by using tools like DeepDAO or DAOlist.
- After identifying them, you can join their discords or telegram channels to learn more about the DAO community.
- The next step is to buy their virtual token or mint their personal NFT.
- You’re then meant to integrate yourself into their social media platforms and interact with the community to learn more about it and grow popular.
- After, you should look at how you can contribute to the community. If there is a sure way you can impact it, a proposal should be submitted.
- After this, the community will then review and vote on your proposal.
The process of joining a DAO is seamless, and although you may meet a couple of stumbling blocks on the way, it can still be easy to go around. It’s way more convenient than the usual board, as you’re only tasked with minting their NFT and interacting.
Although it is easy, every individual should note that joining a DAO in its early stages is vital and the best thing you can do for yourself. The tokens and NFTs are just like any other token in the Web3 universe; they are unpredictable and volatile. It is best to monitor all the projects to avoid buying their coin when it has already reached a high price. This can be done by participating in their discussions and subscribing to news that concerns them.
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