GoodData: The rise of DAO will accelerate the forming of metaverse
“2020 belongs to DeFi, 2021 belongs to NFT, and 2022 will be the year of DAO.” Messari said, a well-known blockchain research institution. GoodData also believes that DAO is leading an important trend in the encryption field this year, which may promote the rapid implementation of metaverse.
DAO is a blockchain-based digital world organization. The management and operation of DAO rules are encoded on the blockchain in the form of smart contracts. It realizes community autonomy through program management and token economic incentives, making the maximum efficiency of organization.
Consistent with the original intention of the invention of the blockchain, DAO aims to build a new digital world that is more democratic, open, and egalitarian. Isn’t this what we expect from metaverse?
DAO provides solutions for Metaverse governance
As a huge network system, the governance of metaverse requires a lot of coordination costs. In the DAO mechanism, smart contracts enable participants to govern in a cooperative manner: people come together because of consistent motivation and common interests, there is no autocratic leader or single point of failure, and it is run almost entirely by code, greatly reducing the coordination cost of metaverse governance.
Therefore, we found that the metaverse is actually a large DAO, and this large DAO will be composed of many small DAOs.
Today, DAOs mostly appear in many segments such as social media, investment funds, and decentralized protocols, such as MetaCartel in the investment field, PleasrDAO in the NFT collection field, and ConstitutionDAO in crowdfunding bidding for copies of the U.S. Constitution.
According to data from The Block Research, centralized crypto exchanges saw over $14 trillion in trading volume in 2021, a 689% increase compared to the trading volume in 2020, and this data is likely to continue to increase in 2022. At the same time, more and more talented trading enthusiasts are emerging in the crypto market.
Blockchain platform GoodData’s upcoming DAO platform is a gathering of crypto trading enthusiasts. The common goal of trading enthusiasts here is to improve the overall data information of crypto transaction. Under the incentive mechanism of GoodData, trading enthusiasts will be rewarded by sharing data, a more sustainable source of income can be established without relying on centralized platforms and paying.
Perhaps, metaverse is still a certain distance away from us, but DAO has allowed us to see how a more democratic and open organization works. Over time, it is believed that more and more new businesses will appear in the form of DAO. What we need to do is to know DAO in advance, understand DAO, and participate in DAO. In this way, when the metaverse appears in our lives, we will not feel strange.