DAO Enabled NFT Platform: How To Implement DAO In Your NFT Marketplace Development?

The growth of the NFT market in recent days raised the scope for entrepreneurs to deliver their competing NFT business. Imagine a video or Gif getting sold for millions. Isn’t it worth investing in this lucrative market? According to a statistics report, the NFT market is expected to reach $80 billion by the year 2022. The NFT market is spiking up with larger revenue generation. The concurrent scenario is unfurling opportunities for budding entrepreneurs like you to venture into the NFT space. The NFT space is witnessing several advancements that keep them going further in the market.

When you develop your NFT platform, make sure you adopt something different to make it interesting for the users and creators. How about dealing with governance and community handling in your NFT marketplace development? This blog will take you down by explaining on developing a contending NFT platform.

Concept Of DAO- Well Explained!

When we talk about digital currencies, they are decentralized, which means they do not have any authoritative bodies to govern the transactions. The flow of digital currencies is not governed by any institutions like the government and central bank. They are divided among various computers, networks, and nodes. Digital currencies utilize decentralization to ensure privacy and security for individuals. This inspired the developers to come up with the concept of creating a decentralized network for a group of communities.

DAO or Decentralized Autonomous Organization is an organization for developers to automate the decisions and facilitate Cryptocurrency transactions. The organization is developed to act automated and decentralized. It is a form of venture capital that acts on the open-source code that can operate without any typical management structure or board of directors. In DAO, the communities will be involved in making collective decisions to vote for the future of the organization. There are several NFT projects that lie on the lines of DAO, where a group of token holders is gathered in a community to share the incentives.

Why So Much Emphasis On Integrating DAO With The NFT Platform?

Are people just questioning the hype for DAO in blockchain technology? Is it creating a revolution in a blockchain, or is it just hype? These questions have to be addressed before getting started with developing an NFT marketplace.

DAOs will emerge as a rising solution to those challenges that come with Cryptocurrencies. In a traditional organization setup, the decisions are taken through a hierarchical approach, and the decisions will focus on favoring just one part of the group. But in a decentralized setup, the decisions are not partial, whereas the decisions are neutral in approach. In DAO, the community will have a transparent voting system where they can share their opinions and values among a large crowd audience. Through DAO, every single participant will get a chance to speak out for themselves.

DAOs are the next biggest thing happening in blockchain technology. Coordination and democracy are the two important aspects that are reached through this DAO.

What Is The Story Between The NFT And DAO?

NFTs are digital assets, whereas DAOs are the way to govern sources. Now you might wonder what the case in linking DAO with your NFT marketplace development is. Both of them enable ownership over the assets. As we all know that creators can tokenize their assets into NFTs using blockchain networks. Through this, the creators will get the verifiability and security of the assets. However, the buyers will get the ownership rights. DAOs will help in governing the NFTs.

When both the DAO and NFT come together, it creates a new form of decentralized avenue and investment source in the market. The DAO in NFT platform development ensures transparency through a distributed decision-making system. It will automate the governance of the NFT marketplaces where the users will take part in deciding the future of the marketplace. DAO plays a major role in eliminating the barriers from decision-making authorities. They will, in return, get the authority to vote for the board of directors and other important authorities.

Perks Of DAO Enabled NFT Marketplace Platform

There are quite a lot of differences between a normal NFT platform and a DAO-enabled NFT marketplace platform. Understand the benefits that come with launching an NFT platform with DAO enabled features,

Ownership details

When you launch a decentralized NFT marketplace, DAOs will enable the users to get the rights to review the policies about the moderations of contents, policies, assets, and auctions. They own both smart contracts and digital collectibles to bring autonomy which will thereby remove the concept of leadership in the NFT platform. The users will have the opportunities to stake their NFTs and the native tokens in the DApp to generate rewards. DAOs will enable the communities to propose the decisions and vote on important activities like auctioning, launches, and modifications in contract policies.

Right to vote

When it comes to the features, DAO-enabled NFT platforms offer the same features as the normal NFT platforms. But the DAO-powered NFT platforms support the governance model, whereas the other normal NFT marketplaces will focus on the ownership model. The votes they receive from the communities will be utilized to change the existing rules and policies of the NFT platform.

Income and rewards

DAO will enable the users to propose such opportunities as NFT staking. NFT staking will help the NFT holders to earn their revenue. Moreover, this will help them to unlock their NFTs and NFT tokens into the liquidity pool without transferring the ownership of their NFTs to others. The platform will also provide the users a passive income throughout their existence.

What Are The Use Cases Of The DAO Enabled NFT Platform?

The DAO-enabled NFT platforms operate in a similar way to other NFT platforms, and their use cases are also widespread. Take a look at the domains where they are focused on,

• NFT digital collectibles
• Sports NFT platform
• NFT gaming
• Trading marketplaces
• Real estate
• Asset cycle management

Wrap Up

When you start your NFT venture, it is important to adapt yourself to the ongoing trends prevailing in the market. DAOs are recent advancements that have been receiving much acclaim in the market. Before approaching a reputed NFT marketplace development company, know every nuance about DAO-enabled platforms.