DAOs: Optimizing Collaboration Over the Blockchain

What Counts as a DAO?

  • BitDAO: The largest DAO by AUM, BitDAO is a community-directed treasury that makes strategic investments into Web3, DeFi, and decentralized technologies. Governed by BIT token holders, BitDAO also provides an array of grants with the aim of fostering the adoption of decentralized tech.
  • Uniswap DAO: One of the most popular protocol DAOs, the Uniswap DAO is tasked with governing the popular automated market maker (AMM) known as Uniswap. DAO participants recently voted to reduce trading fees for stablecoin swaps on the platform, which subsequently led to a dramatic increase in trading volume — and hence revenue for liquidity providers. It is now the largest DAO by the number of token holders, with over 311,000.
  • PleasrDAO: One of a rapidly growing number of so-called “collector DAOs”, PleasrDAO is an organization that purchases and collects rare digital goods, including works of art and popular culture. Some of its previous purchases include a one-of-a-kind unreleased Wu-Tang Clan album and an NFT sold by Edward Snowden.
  • Decentraland: This DAO is tasked with governing the virtual world of Decentraland, helping to shape the policies that affect those that build and play in the Decentraland metaverse. This might include organizing protocol upgrades, changing marketplace fees, and replacing members of its Security Council. With over 230,000 governance token holders and a whopping 930+ governance proposals, Decentraland is one of the most active DAOs today.
  • BankLess: Billed as a “movement for pioneers seeking liberation from the tyranny of the traditional financial system”, the BanklessDAO helps to promote the adoption and awareness of decentralized financial systems by producing content, promoting accessible on-ramps, and dispelling myths about DeFi.
  • MetaMask: The company behind the world’s most popular Web3 wallet recently announced plans to launch a DAO. Details regarding the exact purpose of the DAO remain scant, but it is known that it will be used to organize funding for new aspects of MetaMask and will feature its own governance token. Though it hasn’t launched yet, the MetaMask DAO will almost certainly become one of the largest DAOs of its time.

How do They Work?

  • More than a fixed percentage of DAO participants must take part in the vote
  • For DAOs without a flat management structure, a vote must include certain participants to be considered valid
  • Multiple rounds of voting may be required.

Why Are DAOs Growing in Popularity?

DAOs in the Future

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