The Importance of Community and the Concept of DAOs — Why Welly? — Part 2

What makes a successful NFT project? Beyond the core concepts of decentralization, pricing, and unique ownership, projects with staying power must have qualities that cultivate demand for and reward loyalty to a brand or concept. In addition, having a defined roadmap and real- world use case help a NFT project stand out in a crowded field. Aligning founders and collectors with shared interests and empowering them to make collaborative decisions guiding the direction of the project is essential to longevity in the NFT space.

Art

Certainly, art can be a selling point of 1-of-1’s or fine-art digital collectables. NFT designs vary from the complexity of an oil painting to as simple as a stick figure. As beauty is often in the eye of the beholder, perceived value of an NFT is variable and subjective. As the NFT market evolved from bull-market mania of 2021 to a slower, more restrained pace this year, an increased focus on creativity and visual aspects of individual pieces emerged. When considering the length of time collectors often hold an NFT prior to making a profitable trade, the benefit of owning a digital image that is pleasing to the eye becomes more significant. If the NFT is one the holder can identify with enough to display or use as a screensaver or avatar, its perceived value can remain high, regardless of floor price.

Utility

As the NFT space matured, demand for simple profile pictures faded, and founders began assigning more and more utility. Collectors today have a variety of utility options from which to prioritize: staking, token drops, rental, in-game use, and access to IRL events provided to NFT holders being just a few. Some roadmaps are well-constructed with attainable goals, while others have very little hope of ever crossing the finish line. Without a dedicated group of individuals supporting the project and consistent follow-through on goals, all the utility in the world won’t guarantee blue-chip status or even a stable floor price at six months after mint. Utility drives adoption, which in turn increases liquidity and volume. Without these, investors quickly lose interest.

Community

Assessing how important community is to the organic growth of a NFT project requires a deeper dive. After the mint hype fades and the long road to building a useful product begins, there has to be something that keeps members of the community invested in the long-term potential. Shared goals and interests, as well as frequent communication with the team and an active social media outreach strategy can provide a framework that fosters community trust,

engagement, and growth. Metrics including number of unique holders, percentage of NFTs listed, and discord/social platform membership and activity provide valuable feedback regarding the overall vibe of the community.

The DAO Concept

A community with a voice in decisions shaping the future of an NFT project are often the most powerful communities, as members have a personal investment in the project’s success. The surge in popularity of the Decentralized Autonomous Organizations (DAO) suggests communities increasingly want more involvement when it comes to strategy and implementation of project roadmaps. What was once the sole responsibility of founders, can now be shared with the community, allowing for more robust debate and thoughtful decision- making.

Welly NFT is a community-driven project, which means the future of the brand is in the hands of the community. In this way, Welly holders have the power to be as involved as they choose to be. Allowing the option to partner with brands, such as Shiba Inu.

The Welly D.O.G. Model

Welly’s DAO model was tested during the recent launch of its Decentralised Organisational Group (D.O.G.) in late November. This process tasked community members with selecting the top design for the interior of future franchise locations from a sample of three designs provided by collaborating design firm, Masquespacio. 1,700 votes were cast by community Welly NFT holders over the span of one week. Results were announced on November 28, with the top design receiving over 68% of the total vote.

Future decisions presented to Welly community members will utilize the D.O.G. model. This will include decisions ranging from store interiors to franchise locations, menu offerings, and packaging. In addition, a separate DAO, will be used by the Shiba Inu community to decide how to best use funds allocated to SHIB holders — accounting for 15% of future net store profits. The collaboration of Welly and SHIB has the potential to set the standard for decentralized partnerships, empowering the community, and disrupting the fast-food industry by harnessing the power of blockchain technology and the people.

Written by CryptoQueen1 Edited by Sagnik

This is the Second part in a series of Mediums detailing different aspect of Welly’s IRL & NFT projects. Every week, a new Medium will be published. Other parts in this series of Mediums –
Part 1 — Fast-Food + Web3 Blockchain Technology

For more details, please visit Welly. Happy Reading.