DAO, DEFI and NFTs
May, 4, 2022
In the past and as a result of the industrial revolution, corporations (drivers of progress in applying technology to commerce) emerged as a new system for pooling resources and improving productivity, generating better profits for the bottom line and their shareholders. On the other hand, these corporations produced an important and visible rupture of social classes due to the monster that encouraged centralization.
In the present and thanks to a Gig Economy workers have flexible hours and certain improvements in family reconciliation and many options for internal promotion, as well as a great exposure to other job offers thanks to the algorithms of the RRSS focused on the professional sector. By contrast most of the control and profits remain in the hands of investors and executives, this is one of the main reasons why talent leaves both companies and the country.
For the future it seems that things will happen and will be managed in a totally different way, we are going straight towards the DAO (Decentralized Autonomous Organization) where the distribution, allocation, risk management and control falls horizontally and equally on all members of this new organization (DAO). We can detect a clear and logical combination between corporations and the Gig Economy to obtain a more efficient and profitable system for all the actors of the new Internet-native organizations. From here on smart contracts will be the ones to take control to develop what is commonly called “a global untrasted system”.
In this new scenario new figures also appear on the scene, leaving behind labels and positions of entrepreneurial or executive nature to begin to meet a new social tribe that is impacting and causing this change, the builders, programmers or developers among others.
Like any new emergence and implementation, we must at least know what genesis is, and for this we must always find answers to few but very well-intentioned questions of the kind : Does it solve a real problem? Is anyone willing to pay for it? What function will it fulfill? Will DAO’s be compatible with other DAO’s regardless of where it is created?
If we dive into DAO’s to be able to reflect the actuality of the work being done in this sector, we find very cutting edge innovations and quite alternative solutions to the whole narrative that has been generated in the crypto sector, highlighting 4 lines:
ASSET MANAGEMENT: some DAO’s seem to want to solve and innovate in asset management methodologies, creating for this purpose better structured products to then introduced in the market (for example in Set Protocol or Set Swap) and create a revenue stream that can return directly to the DAO, thus allowing to finance the structure itself, future initiatives or products. What is really interesting and novel in terms of management change and target attainment is that these products are owned by the DAO and governed by the DAO itself through its native governance token.
I recommend you to take a look at https://www.galleon.community/
This allows a DAO to potentially use and integrate with other functions such as DeFi, staking, lending, gaming and NFT’s, but not only that, with a good token design it can integrate into layer 2 and there can be organizations with multi-chain operations.
FINANCIAL PRODUCTS: other DAO’s are building DeFi-like lending protocols that allow immediate loans but in this case using any NFT as collateral, thus allowing anyone to earn interest on the NFT’s they own. This can be done thanks to the continuous development of this industry which already allows us to obtain the value of an NFT token in real time using for example protocols such as Abacus Spot.
I recommend you to take a look at https://www.gradient.city/
PERPETUAL YIELD: some DAO’s are betting on delivering performance to their members through a composable and liquid perpetual yield token, facilitating its holding, maintenance and exchange with costs capable of attracting high liquidity. Thanks to the speed of the market and its sophistication, builders know that they must offer products that are more versatile, adapted and that in some way not only generate profits, but can also offer coverage in specific moments of need for the DAO’s own treasury. This also allows to offer DAO ́ s working with strategies that contemplate negative yield tokens thanks to the fact that many protocols are developing innovative AMM’s that allow to obtain great liquidity for both positive and negative yields, maximizing LP returns.
I recommend you to take a look at https://blog.timelessfi.com/
DIGITAL REPUTATION: one of the vital points and with great value for all users of a network seeking to interact with other networks, products or services is the digital reputation, since having a good or bad reputation on the internet will allow us to access different layers and with different options on them. This reputation has to be linked to our public address (wallet) in order to start building it when we start to deposit or stake crypto assets or also when we start to integrate with communities, metaverses or gaming.
I recommend you to take a look at https://www.lvlprotocol.xyz/ and https://indiedao.gitbook.io/indiedao/products/lvl-protocol.
But it is not only at this stage to develop a sustainable reputation system, but a whole infrastructure that can bring together all the systems that provide service in terms of obtaining verifiable credentials, certifications, web3 data, web2 data and that can be integrated into any smart contract. Along these lines each DAO can even determine the skill and accessibility levels that apply to the context of their ecosystem, either to access a simple membership or to access project opportunities based on their reputation. This way data warehousing becomes scalable, interoperable, fully practical, efficient and even productive.
As we can see a new source of personal, intellectual and corporate wealth is beginning to emerge with totally different nuances, objectives and players, but aligned with a common goal “to extract the true potential and value from the network“. We are moving slowly, but surely towards the web 3 community, where it is necessary to think differently, to be who we are expected to be, non-participation, interaction or isolation is not allowed. Everyone regardless of who we are, where we are, how long we have been in the DAO and our role in it. We must participate for the common good of all.