The Relationship between Decentralised Autonomous Organisations (DAOs) and Guilds
As the name suggests, decentralised autonomous organisations (DAOs) represent a group of people that cooperate to serve a single purpose under a single entity. DAOs are created and operated on the blockchain through smart contracts, of which one must purchase a token (or NFT) to participate in the DAO. The token also gives rights to govern the different decisions that the DAO as a whole can make, where voting power scales with the amount of tokens the user holds. This mechanism aligns incentives between token holders and the DAO, where token holders will ultimately vote to serve the purpose of the DAO to increase the price of the token.
The purpose of DAOs varies entirely based on its community members. For example, ConsitutionDAO’s purpose was to raise enough money to purchase one of the original copies of the U.S. constitution from soothebyes. Other examples include protocols that provide financial services while operating as a business. These protocols are also known as DeFi protocols, the act of settling information (and money) on chain.
Similarly, it can also be argued that there are significant similarities between DAOs and Guilds. While Guilds in the crypto world are thought to be the act of renting out NFT assets to users in play to earn games, Guilds in the traditional gaming world are defined as “an organized group of video game players that regularly play together in one or more multiplayer games”. Ala, a Guild is essentially a DAO that operates in video games.
GuildFi and DAO
This brings us to GuildFi. GuildFi’s ultimate objective is to attract as many users as possible to web3 via the GuildFi platform. While the GuildFi name may confuse crypto natives who associate GuildFi with the traditional crypto guild model as outlined above, it is understood clearly by non crypto native gamers that GuildFi refers to a community of gamers that are attempting to add as much value to different games and web3 apps more broadly as possible.
As time progresses, GuildFi will continue to strive to empower token holders, giving each and every token holder the right to govern the protocol. The first step of this process was taken with the GF token launch, where the auction occurred through Copper Launch — a platform that allows each and every investor the opportunity to purchase as many GF tokens as they would prefer.
Additionally, in the coming months, GuildFi will also allow for governance to align users and investors such that the GuildFi platform and more importantly community, benefits as much as possible. This will also be done in combination with the sGF mechanism, where voting power will be determined not only by the amount of GF held, but rather, by how many sGF tokens you hold. sGF tokens are earned by staking GF tokens for a certain amount of time. The longer staked, the more sGF tokens are earned. Therefore, voting power will be distributed towards those that have staked their GF tokens for a longer period of time or, in other words, have aligned their interest with the longer term prospects of the GuildFi community and platform.
